TORONTO , June 26, 2023 /CNW/ - Pala Investments Limited (" Pala "), a multi-strategy investment company focused on the mining and metal value chain, has exercised 352,723,212 warrants (the " Warrants ") for common shares (" Common Shares ") of Nevada Copper Corp. (the " Company " or the " Issuer ") (the " Warrant Exercise "). Each Warrant is exercisable for one (1) Common Shares at a price per Common Share of C$0.2592 (the " Exercise Price "). The Exercise Price will be satisfied by the retirement of approximately US$67.4 million (using an exchange rate of C$1.3571 = US$1.00 ) of indebtedness owing by the Issuer to Pala pursuant to the amended and restated credit facility between the parties dated October 28, 2022 (the " Pala Facility ").
Pala's Security Ownership
Since the date of the last early warning report required to be filed by Pala on May 12, 2023 (the " Prior EWR "), Pala has acquired an additional 154,442,714 Common Shares (46,000,000 of which were as the result of the exercise of 46,000,000 Warrants) and 54,221,357 Warrants (the " Prior Issuances "). The Prior Issuances did not change Pala's ownership interest in the Issuer by 2% or more and did not require the filing of any early warning report. The calculations below are comparative with respect to the last EWR and take into account Pala's change in securities of the Issuer as a result of the Warrant Exercise and the Prior Issuances (collectively, the " New Issuances "). See the Prior EWR and related press release dated the same date for further details with respect to Pala's obligations to participate in the Prior Issuances.
Immediately prior to the New Issuances, Pala (including securities held by Pala Assets Holdings Limited, an affiliate of Pala) held (i) an aggregate of 314,355,449 Common Shares, representing approximately 43.45% of the issued and outstanding Common Shares on a non-diluted basis and 398,723,212 Warrants, and (ii) an aggregate of 713,078,661 Commons Shares, representing approximately 63.54% of the issued and outstanding Common Shares, on a partially diluted basis (assuming the exercise in full of the 398,723,212 Warrants).
As a result of the New Issuances, Pala (i) has acquired 108,442,714 Common Shares and 54,221,357 Warrants that are exercisable into 54,221,357 Common Shares pursuant to the Prior Issuances, (ii) has disposed of 46,000,000 Warrants and acquired 46,000,000 Common Shares pursuant to the exercise thereof in connection with the Prior Issuances, and (iii) will acquire 352,723,212 Common Shares in connection with the Warrant Exercise. As a result thereof, immediately following the New Issuances, Pala (including securities held by Pala Assets Holdings Limited, an affiliate of Pala) holds (i) an aggregate of 821,521,375 Common Shares, representing approximately 61.12% of the issued and outstanding Common Shares on a non-diluted basis and 54,221,357 (the " Pala Warrants "), which is an increase of 17.67% in Pala's securityholding percentage on a non-diluted basis with respect to Common Shares, and (ii) assuming the exercise in full of all Pala Warrants, an aggregate of 875,742,732 Common Shares, representing approximately 62.63% of the issued and outstanding Common Shares on a partially-diluted basis, which is a decrease of 0.91% in Pala's securityholding percentage on a partially-diluted basis in respect to Common Shares.
In addition, if the Issuer draws under a deferred funding agreement previously disclosed in the Prior EWR, Pala may acquire additional Common Shares however the price per Common Share will be based on the future price of the Common Shares and it is therefore not possible to determine the number of Common Shares that may be issuable in connection therewith. See the Prior EWR and the related press release for additional details.
Pala is participating in the transactions for investment purposes and may increase or decrease the investment in the securities of the Company depending on its evaluation of the business, prospects and financial condition of the Company, the market for the Company's securities, general economic and tax conditions and other factors.
The Common Shares are listed on the TSX under the symbol "NCU". Nevada Copper Corp. is a corporation organized under the laws of British Columbia with its head office at 61 E. Pursel Lane , Yerington, Nevada , 89447. Pala is a company existing under the laws of Jersey and its address is 12 Castle Street, St. Helier, Jersey JE2 3RT.
About Pala
Pala is an investment company focused exclusively on the mining sector with a strong track record of successful investments and value creation. Pala's team has extensive experience within the sector and seeks to assist companies in which it has long-term shareholdings by providing strategic advice and innovative solutions in development, production, turnaround and advanced exploration situations. Pala invests across all geographies and in all mining commodities as well as mining services and consumables. For more information, visit www.pala.com .
SOURCE Pala Investments Limited