Nevada Copper Corp T.NCU

Alternate Symbol(s): T.NCU.W.C | NEVDF

Metals & Mining Copper

Nevada Copper Corp is a Canada-based mining company. The Company is engaged in the development, operation, and exploration of its copper project (the Project) at its Pumpkin Hollow Property (the Property) in Western Nevada, United States of America. Its two fully permitted projects include the high-grade Underground Mine and processing facility, which is undergoing a restart of operations, and a large-scale open pit PFS stage project. The Property is located in northwestern Nevada and consists of approximately 24,300 acres of contiguous mineral rights including approximately 10,800 acres of owned private land and leased patented claims. Pumpkin Hollow is located approximately 8 miles southeast of the small town of Yerington, Nevada in Lyon County, one- and one-half hours drive southeast of Reno. The Company’s wholly owned subsidiary is Nevada Copper, Inc.

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Nevada Copper Corp

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Post by shakerman640on Aug 18, 2015 2:25pm

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Post# 24028650

Dundee Capital Markets comments on Nevada Copper Corpoation

According to Dundee Capital Markets:

https://tinyurl.com/oko65x2

Nevada Copper Corp.

(NCU-T: C$1.29)

August 17, 2015

BUY, High Risk

Dundee target: C$3.00

Pumpkin Hollow Project Fully Permitted

NCU announced this morning that the appeal period for their outstanding revised reclamation permit has expired, and NCU is now fully permitted for a 70,000 tpd integrated open pit and underground mine at its Pumpkin Hollow Copper Project. This is very positive news for NCU, as permitting de-risking represents a major milestone for the Pumpkin Hollow Project. We maintain our belief that NCU is an attractive M&A target - based on HBM's recent acquisition of AZC, we believe NCU has an implied takeover valuation ranging from $2.00-$5.57/share. We have a BUY rating on NCU and a target price of $3.00/share based on 0.9x (from 0.8x) multiple to our NAV of $3.33/share (from $3.72).

Running low on cash: Working capital is currently at ($14.5M) including cash of $9.9M, down 55% from Q1. NCU did announce recently that they had extended the maturity on their Pala Bridge Loan Facility to January 31, 2016 (from July 31, 2015) and increased the principal amount from $15M to $25M. This extension provides NCU with a little extra breathing room; however their current financial position is definitely not healthy. NCU already requires a financing solution in order to build the Pumpkin Hollow project - we believe NCU may need to seek additional financing or a debt restructuring to save their balance sheet.

Pumpkin Hollow financing recap: If NCU chooses not to drawdown on the remainder of the Red Kite facility, then the company will have to raise approximately $277MM to finance the remainder of the Phase 1 CAPEX, or $1.07Bn to finance the integrated option. Conversely, if NCU chooses to drawdown on the balance of the Red Kite Facility, then only $128MM would have to be raised to fund Phase 1, or ~$897M for the integrated approach. We believe NCU would prefer not to drawdown on the balance of the Red Kite facility and could consider:

• Equity

• Debt

• Selling part of its assets

• Partner in the Pumpkin Hollow project

• M&A

NCU CAPEX & Financing Requirements