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patchhon Jul 01, 2022 3:38pm
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DJ Nevada Copper in Default of Certain Financial Obligations
DJ Nevada Copper in Default of Certain Financial Obligations DJ Nevada Copper in Default of Certain Financial Obligations
Dow Jones Global News - Jul 01, 2022 12:48:00
By Denny Jacob
Nevada Copper Corp. said Friday it is in default of certain financing and contractual obligations
as it has discussions with financing partners to continue its operations.
The copper producer said it is seeking to raise additional funds to continue operations, including
the ramp-up of the Underground Mine, with third parties and financing partners. These include
its senior lender, KfW IPEX-Bank, and its largest shareholder, Pala Investments Ltd., about
additional funding and other financial accommodations.
Nevada Copper said it has drawn $11.5 million under a previously disclosed $20 million
promissory note from Pala but that there is no assurance that further withdrawals will be
available.
The company said it has suspended most mining activities as it aims to reduce site and
operational expenditures. Nevada Copper said it hasn't made payments due to certain creditors
and vendors, and is in discussions with them regarding timing of payments and services and
supplies.
Write to Denny Jacob at denny.jacob@wsj.com