From Bad to Worse.....Hello again friends, just popping in as the company has released some more devastating news for holders. Again not a surprise this went down like this, news release below. As most of you guys know, though i'm not a s/h anymore, i still do follow the company somewhat & do check in once in a blue moon on the forum. Even though this board is pretty much useless for all intents & purposes.
After reading & digesting the news, what could be next for s/h? Personally, i really don't care as i'm not a s/h anymore and therefore no vested interest. And thank the allmighty for me ( and anyone that listened lol) to have gotten out just in time before this disaster hit. But all the same, i'll just give my 2 cents to where i think this headed.
So, what's next? Insolvency, BK or more massive dilution & another RS? Anyone one of those three possibilites has an equal chance of happening imo. Maybe if the Russian-Ukranian thing didn't happen, the first two options probably wouldn't be on the table this early or at all. But unfortunately it did. As per usual, i see honesty & transparency is still a major problem here as it has always been, as they released the news in the Weeee hours of a 4th of July. LOL, you got to give them at least some credit for being creative & kniving.
My guess would be the probability of more dilution being the more likely scenario IF the Russian element wasn't there. But IT IS and puts both Pala & the German lender in a tough spot. So i say now its flip of the coin and ANY three of the following options, meaning, BK or (creditor protection equivalent in Canada) insolveny OR massive dilution have an equal chnace of happening. Sad to see, but it was inevtiable after the last few disappoiting updates. Hopefully most of you listened to me and GTFO.
NEVADA COPPER PROVIDES FURTHER OPERATIONAL AND FINANCIAL UPDATE
Nevada Copper Corp. has provided an update on operations at its Pumpkin Hollow underground copper mine located in Yerington, Nev., and on its financial liquidity.
Response to Restricted Stope Access and Dike Progress
As previously disclosed on June 6, 2022, an unidentified weak rock structure being encountered in the main ramp to the East South Zone restricted access to the Company's planned East South stoping zones. In response to this event, the Company has taken steps to curtail operating activities while developing plans to address this issue.
The Company has continued development of its priority heading through the dike structure and into the East North mining zone, which is expected to have significantly higher copper grades and better geotechnical conditions compared with the East South Zone. Although almost complete, additional work is required to finish the dike crossing.
Due to the liquidity issues referred to below, the Company may not be able to undertake further work on the ramp to the East South Zone or the dike crossing.
Liquidity
As previously disclosed, the Company has been seeking to raise additional funds to continue its operations, including the ramp-up of the Underground Mine. The Company is in ongoing discussions with third parties and the Company's financing partners, including its senior lender, KfW IPEX-Bank, and Pala Investments Limited ("Pala"), the Company's largest shareholder, about additional funding and other financial accommodations. The Company has drawn US$11.5 million under the previously disclosed US$20 million promissory note from Pala. Further draws under the promissory note are subject to agreed use of proceeds and satisfactory arrangements being reached with certain creditors and vendors (which have not yet been reached). There can be no assurance that further draws under the promissory note will be available.
While these discussions are ongoing, the Company is taking measures to significantly reduce Underground Mine site and other operational expenditures, including the suspension of most mining activities. The Company has not made payments due to certain creditors and vendors, including its mining contractor and working capital provider, and is in discussions with them regarding timing of payments and services and supplies. Consequently, the Company is in default of its obligations under certain financing and contractual arrangements.
While the Company is continuing discussions with its financing partners and vendors to secure further funding and other satisfactory arrangements, there is no assurance that such funding and other arrangements will be obtained within the required timeframe and in a sufficient amount, or at all. In the absence of securing such arrangements, the Company will not be able to continue carrying on business in the ordinary course and may need to pursue proceedings for creditor protection. The Company's creditors may also seek to commence enforcement action, including realizing on their security over the Company's assets.