Nevada Copper Corp NEVDQ

RE:selling into news

[PieEconomics]

(1) Debt arrangements:

During the next 4 months NCU will need to spend $20 to $30 million more than what had originally been budgeted.

NCU has received an offer (?) from a 3rd party lender, to loan them the money, as well as being in discussions with its existing senior bank lender and other potential lenders.

Pala's short term lending at 8% interest, comes due January 31, 2021, and advancing money at this interest rate for the over-budgeted amounts is only committed through December 31, 2020.

(2) Equity arrangements:

Why does there need to be any new equity financing if the company is able to borrow the additional $20 to $30 million?

Only in the very unlikely event that NCU cannot obtain this loan financing, would an equity rise be necessary.

The shares have sold off with a quick 50% haircut, anticipating that this additional loan financing will not be available, in which case new equity funding at perhaps 5 cents (plus new warrants) will be needed.

But once a new loan financing is finalized, and investors see there won't be new equity issued, then the share price should quickly recover and then some.

I think Pala would make more money by trying to avoid issuing new equity at this point. In light of the plight of outside shareholders to date, here is an opportunity for Pala to support remaining outside shareholders, and be rewarded by a massively increased stock valuation.