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NCU - Nevada Copper News Story

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Basic Materials
Small Cap
Market Cap £184.1m
Enterprise Value £373.1m
Revenue £n/a
Position in Universe 518th / 2712

Nevada Copper Announces Closing of Public Offering

Mon 29th November, 2021 2:04pm
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YERINGTON, Nev., Nov. 29, 2021 (GLOBE NEWSWIRE) -- Nevada Copper Corp. (TSX:
NCU) (OTC: NEVDF) (FSE: ZYTA) (“Nevada Copper” or the “Company”) is
pleased to announce that it has completed its previously announced public
offering of units of the Company (the “Units”), which included the partial
exercise of the over-allotment option (the “Over-Allotment Option”) by a
syndicate of underwriters that included Scotiabank, Jett Capital LLC, RBC
Capital Markets, Haywood Securities Inc. and Research Capital Corporation. As
announced on November 11, 2021, the public offering (the “Offering”) was
upsized due to strong demand, including from new and existing institutional
investors and mining sector corporates.

The Company issued an aggregate of 162,644,300 Units and 2,000,000 Warrants
(as defined below), including 14,544,300 Units and 2,000,000 Warrants pursuant
to the partial exercise of the Over-Allotment Option, at a price of C$0.77 per
Unit (the “Offering Price”) and C$0.08 per Warrant, for aggregate gross
proceeds of approximately C$125.4 million. Each Unit consists of one common
share of the Company (each a “Common Share”) and one-half of one Common
Share purchase warrant (each full warrant, a “Warrant”). Each Warrant is
exercisable for one Common Share (each a “Warrant Share”) at a price of
C$1.00 per Warrant Share until May 29, 2023.

The proceeds of the Offering will be sufficient to satisfy the condition to
the effectiveness of the previously announced amendments to the Company’s
amended and restated credit facility with its senior project lender, KfW-IPEX
Bank (the “KfW Facility”), for a significant deferral and extension of its
debt facilities. See the Company’s October 12, 2021 news release for
additional details on the amendments to the KfW Facility.

In connection with the closing of the Offering, the Company’s largest
shareholder, Pala Investments Limited (“Pala”), has maintained its current
shareholding percentage in the Company by completing the purchase, on a
private placement basis, of 98,104,584 Units, at the Offering Price in the
aggregate amount of approximately C$75.5 million (the “Concurrent Private
Placement”). The consideration for the Concurrent Private Placement was the
full repayment of the promissory note entered into between the Company and
Pala on June 10, 2021, as amended and restated, and the partial repayment of
debt owing by the Company to Pala under the credit facility entered into
between the Company and Pala on February 3, 2021 (the “Credit Facility”).

As previously announced, in connection with the Offering and the Concurrent
Private Placement, Pala and the Company have agreed to amend and restate the
Credit Facility on the terms set forth in the binding term sheet entered into
between the Company and Pala on November 10, 2021 (the “Amended Credit
Facility”). The Amended Credit Facility will have a principal amount of
approximately US$32 million and an extended maturity date to January 31, 2026.
The Amended Credit Facility will contain an accordion feature allowing the
Company to draw up to an additional US$15 million under the Amended Credit
Facility, subject to the agreement of Pala and the prior acceptance by the
Toronto Stock Exchange (the “TSX”). The Company expects to enter into the
Amended Credit Facility on or about November 30, 2021. In connection with
entering into the Amended Credit Facility, the Company will issue 15,000,000
Common Share purchase warrants (the “Credit Facility Warrants”) to Pala.
Each Credit Facility Warrant will entitle Pala to purchase, on or before
January 31, 2026, one Common Share at an exercise price equal to a 25% premium
to the 5-day volume weighted average price of the Common Shares as of the
trading day immediately prior to the entering into of the Amended Credit
Facility. Pursuant to the requirements of the TSX, the approval of
disinterested shareholders of the Company will be required to be obtained
before the Credit Facility Warrants become exercisable.

This news release does not constitute an offer to sell or a solicitation of an
offer to sell any of securities in the United States. The securities have not
been and will not be registered under the U.S. Securities Act or any state
securities laws and may not be offered or sold within the United States or to
U.S. Persons unless registered under the U.S. Securities Act and applicable
state securities laws or an exemption from such registration is available.

About Nevada Copper

Nevada Copper (TSX: NCU) is a copper producer and owner of the Pumpkin Hollow
copper project. Located in Nevada, USA, Pumpkin Hollow has substantial
reserves and resources including copper, gold and silver. Its two fully
permitted projects include the high-grade underground mine (the “Underground
Mine”) and processing facility, which is now in the production stage, and a
large-scale open pit project, which is advancing towards feasibility status.


Randy Buffington, President and CEO

For further information contact:
Rich Matthews, Investor Relations
Integrous Communications
+1 604 757 7179

Cautionary Language

This news release includes certain statements and information that constitute
forward-looking information within the meaning of applicable Canadian
securities laws. All statements in this news release, other than statements of
historical facts are forward-looking statements. Such forward-looking
statements and forward-looking information specifically include, but are not
limited to, statements that relate to the entering into of the Amended Credit
Facility and the timing in respect thereof, and the issuance and approval of
the Credit Facility Warrants.

Forward-looking statements and information include statements regarding the
expectations and beliefs of management. Often, but not always, forward-looking
statements and forward-looking information can be identified by the use of
words such as “plans”, “expects”, “potential”, “is expected”,
“anticipated”, “is targeted”, “budget”, “scheduled”,
“estimates”, “forecasts”, “intends”, “anticipates”, or
“believes” or the negatives thereof or variations of such words and
phrases or statements that certain actions, events or results “may”,
“could”, “would”, “might” or “will” be taken, occur or be
achieved. Forward-looking statements or information should not be read as
guarantees of future performance and results. They are subject to known and
unknown risks, uncertainties and other factors which may cause the actual
results and events to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements or information.

Such risks and uncertainties include, without limitation, those relating to:
the ability of the Company to complete the ramp-up of the Underground Mine
within the expected cost estimates and timeframe; requirements for additional
capital and no assurance can be given regarding the availability thereof; the
impact of the COVID-19 pandemic on the business and operations of the Company;
the state of financial markets; history of losses; dilution; adverse events
relating to milling operations, construction, development and ramp-up,
including the ability of the Company to address underground development and
process plant issues; failure to enter into the Amended Credit Facility;
ground conditions; cost overruns relating to development, construction and
ramp-up of the Underground Mine; loss of material properties; interest rates
increase; global economy; limited history of production; future metals price
fluctuations; speculative nature of exploration activities; periodic
interruptions to exploration, development and mining activities; environmental
hazards and liability; industrial accidents; failure of processing and mining
equipment to perform as expected; labor disputes; supply problems; uncertainty
of production and cost estimates; the interpretation of drill results and the
estimation of mineral resources and reserves; changes in project parameters as
plans continue to be refined; possible variations in ore reserves, grade of
mineralization or recovery rates from management’s expectations and the
difference may be material; legal and regulatory proceedings and community
actions; accidents; title matters; regulatory approvals and restrictions;
increased costs and physical risks relating to climate change, including
extreme weather events, and new or revised regulations relating to climate
change; permitting and licensing; volatility of the market price of the
Company’s securities; insurance; competition; hedging activities; currency
fluctuations; loss of key employees; other risks of the mining industry as
well as those risks discussed in the Company’s Management’s Discussion and
Analysis in respect of the year ended December 31, 2020 and in the section
entitled “Risk Factors” in the Company’s Annual Information Form dated
March 18, 2021. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect, actual results
may vary materially from those described in forward-looking statements or
information. The forward-looking information or statements are stated as of
the date hereof. Nevada Copper disclaims any intent or obligation to update
forward-looking statements or information except as required by law. Readers
are referred to the additional information regarding Nevada Copper’s
business contained in Nevada Copper’s reports filed with the securities
regulatory authorities in Canada. Although the Company has attempted to
identify important factors that could cause actual actions, events, or results
to differ materially from those described in forward-looking statements, there
may be other factors that could cause actions, events or results not to be as
anticipated, estimated or intended. For more information on Nevada Copper and
the risks and challenges of its business, investors should review Nevada
Copper’s filings that are available at

Nevada Copper provides no assurance that forward-looking statements and
information will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements or
information. Accordingly, readers should not place undue reliance on
forward-looking statements or information.


GlobeNewswire, Inc. 2021
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