Pumpkin Hollow Restart Financing
Torys acted as counsel to Nevada Copper in its US$123 million financing package in connection with the restart of its Pumpkin Hollow copper mine in Nevada, United States, including a US$40 million equity financing, a US$30 million stream and royalty financing, a US$15 million senior credit facility extension, up to US$13 million in deferrals under its senior project and working capital facilities, the consolidation of US$76.5 million of indebtedness and US$25 million in additional backstop support.
On October 28, 2022, Nevada Copper Corp. ("Nevada Copper") announced that it closed a financing package that provides up to US$123 million of liquidity to support the restart and ramp-up of its Pumpkin Hollow underground copper mine
Highlights of the package include
- a US$40 million in equity investments by its largest shareholder, Pala Investments Limited (“Pala”), who provided US$20 million in exchange for 125,435,185 common shares of capital in the company, and Mercuria Energy (“Mercuria”), another significant shareholder, who will provide US$20 million in two tranches
- a US$30 million stream and royalty financing with Triple Flag Precious Metals Corp. (“Triple Flag”), including a 1.3% increase in the existing net smelter returns royalty with Triple Flag on Nevada Copper's open pit project for approximately US$26.2 million and the accelerated payment of the remaining US$3.8 million to be funded under an existing metals purchase and sale agreement
- a US$15 million facility under Nevada Copper's senior credit facility extension
- deferral of approximately US$13 million in interest payments under its senior credit facility with KfW IPEX-Bank (“KfW”) and in interest and principal payments under its working capital facility with Concord Resources Limited (“Concord”)
- the consolidation of approximately US$76.5 million of indebtedness owing to Pala into an amended debt instrument
- provision of a backstop funding commitment of up to US$25 million from Pala in exchange for the issuance of shares, convertible and/or non-convertible debt of Nevada Copper
Further information can be found on Globe Newswire’s website.
Nevada Copper is a copper producer and owner of the Pumpkin Hollow copper project. The project has substantial reserves and resources including copper, gold and silver. Its two fully permitted projects include the high-grade underground mine and processing facility, which is now in the production stage, and a large-scale open pit project, which is advancing towards feasibility status.
The Torys team was led by Michael Amm, and included Mike Pedlow, Michael Jason, Christopher Tworzyanski and Matt Bean (corporate), Tom Zverina and Rebecca Jennings (lending) and Craig Maurice (tax).
Torys a également agi dans le cadre des mandats suivants en lien avec ce projet :
Nevada Copper in its C$201 million equity financing, including a C$125.4 million public offering of units and concurrent C$75.5 million private placement of units to Pala Investments Limited
- Nevada Copper in its C$38 million public offering of units
- Nevada Copper in its C$97 million public offering of units
Nevada Copper in its US$176.4 million financing package, including a US$115 million project financing facility with KfW IPEX-Bank, a US$26.4 million cost overrun facility and a US$35 million working capital facility with Concord Resources Limited, a transaction which won IJGlobal's 2019 North America Mining Deal of the Year
- Nevada Copper in its C$40 million equity offering, including a C$24.8 million public offering of common shares and a C$15.2 million private placement of common shares
- Nevada Copper in its C$108.5 million public offering of common shares
Nevada Copper in its US$378 million transformational business recapitalization and project financing in connection with its Pumpkin Hollow copper project in Nevada, United States, including a US$70 million precious metals stream, a US$80 million senior secured loan, a US$53 million debt to equity conversion, a US$100 million equity financing, and a US$50 million equity backstop
| Territoire | Lyon County |
| Province/État | Nevada |
| Pays | États-Unis |
| Nature du mandat | Financement de projet, Entente d’achat de production |
| Client | Nevada Copper |
| Rôle du client | Maître d’ouvrage |
| Valeur | 123 000 000 $ USD |