Nevada Copper Announces Closing of Public Offering

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

YERINGTON, Nev., May 30, 2023 (GLOBE NEWSWIRE) -- Nevada Copper Corp. (TSX: NCU) (OTC: NEVDF) (FSE: ZYTA) (“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 a partial exercise of the over-allotment option (the “Over-Allotment Option”), by a syndicate of underwriters that included Scotiabank, Jett Capital LLC, National Bank Financial, RBC Capital Markets, Research Capital Corporation, and Haywood Securities Inc.

The Company issued an aggregate of 196,038,400 Units, including 22,333,400 Units pursuant to the Over-Allotment Option, at a price of C$0.27 per Unit, for aggregate gross proceeds of approximately C$52.9 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”, and collectively the “Warrants”). Each Warrant is exercisable for one Common Share (each a “Warrant Share”) at a price of C$0.34 per Warrant Share until September 30, 2024.

The Company intends to use the net proceeds of the Offering and those contemplated under the financing package agreement (as discussed in the Company’s May 9, 2023 news release) to continue funding the restart and ramp-up of the Company’s Pumpkin Hollow underground mine (the “Underground Mine”) and for general corporate purposes, including working capital, with the goal of achieving nameplate production capacity of 5,000 tons per day by the end of 2023.

Pala Investments Limited (“Pala”), the Company’s largest shareholder, purchased an aggregate of 108,442,714 Units under the Offering, representing aggregate gross proceeds of approximately C$29.3 million. In addition, Mercuria Energy Holdings (Singapore) Pte. Ltd. (“Mercuria”), another significant shareholder of the Company, purchased 24,814,814 Units under the Offering, for an aggregate purchase of approximately C$6.7 million.

After closing of the Offering, Pala’s ownership interest in the Company on a non-diluted basis has increased from approximately 43% to approximately 47% and Mercuria’s ownership interest in the Company on a non-diluted basis has decreased from approximately 24% to approximately 23% (inclusive of 46,000,000 Common Shares and 25,848,765 Common Shares acquired by Pala and Mercuria, respectively, upon exercise of a portion of their existing Common Share purchase warrants issued in connection with the Company’s October 2022 financing).