Nevada Copper Announces Closing of Its Bought Deal Offering Including Full Exercise of Over-Allotment Option

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

All amounts herein are in Canadian Dollars unless otherwise indicated.

YERINGTON, Nev., Jan. 29, 2021 (GLOBE NEWSWIRE) -- Nevada Copper Corp. (TSX: NCU) (“Nevada Copper” or the “Company”) is pleased to announce that it has completed its previously announced public offering of units of the Company (the “Units”), which included the exercise in full of the over-allotment option (the “Over-Allotment Option”) by the underwriters, which was comprised of syndicate that included Scotiabank, Jett Capital Advisers, RBC Capital Markets, Haywood Securities Inc., Laurentian Bank Securities Inc., National Bank Financial Inc. and Mackie Research Capital Corporation. The Company issued 230,000,000 Units, including 30,000,000 Units pursuant the Over-Allotment Option, at a price of $0.165 per Unit (the “Offering Price”) for aggregate gross proceeds of approximately $38 million (the “Offering”).

Each Unit consists of one common share of the Company (each a “Common Share”) and one-half of one Common Share purchase warrant (each full warrant, a “Warrant”). Each Warrant is exercisable for one Common Share (each a “Warrant Share”) at a price of $0.22 per Warrant Share until July 29, 2022.

Concurrently with the closing of the Offering, the Company completed its previously announced private placement of 79,696,970 Units to Pala Investments Limited (“Pala”), the Company’s largest shareholder, at the Offering Price (the “Concurrent Private Placement”). The subscription under the Concurrent Private Placement was satisfied by Pala tendering certain indebtedness owed by the Company to Pala.

As previously announced, Pala has agreed to provide a new credit facility to the Company (the “Credit Facility”), which is expected to be entered into in the coming weeks. Upon entry of the Credit Facility, US$15 million will be available to be newly drawn by the Company.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of securities in the United States. The securities have not been and will not be registered under the U.S. Securities Act or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.