Nevada Copper Corp NEVDQ

RE:RE:RE:RE:RE:NCU >>> NEWS OUT >>>

[lumpy13]

I'll say it again, KfW is the equivalent of US Eximbank.  Their objective is as much to help the German economy.  The key for this deal was the concentrates going to a German smelter.  Unless KfW deems NCU a complete disaster, they'll grant additional waivers and time to repay the loan (but I assume at a slightly higher rate).  Given it's a govt agency, they'll take their time, but I expect the negotiations will be completed.

Pala realizes that NCU has to buy time, hence another $13m.  At some point in the future (and likely after the KfW negotiations are completed), they'll extract their additional pound of flesh.  (Additional because the $13m has a 6% fee, so $780k up front).  I expect Pala to eventually either: 1) convert the $55m into very attractively priced shares and warrants or 2) put together a very low priced takeover bid (but only after being convinced that NCU will overcome its problems and be able to reach cashflow positive, which my guess is probably north of 3k tpd).  

The fact that they've made progress with the water dike is a nice first step, but there's many more to go.

I also agree that once NCU has the UG mine working as desired (5k tpd), they'll look to flip it to a bigger copper producer, who can and will develop the OP mine.