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NCU - Nevada Copper News Story

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Basic Materials
Small Cap
Market Cap £150.2m
Enterprise Value £342.4m
Revenue £n/a
Position in Universe 579th / 2712

Nevada Copper Provides Operations and Financing Updates

Wed 1st September, 2021 4:25am
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YERINGTON, Nev., Aug. 31, 2021 (GLOBE NEWSWIRE) -- Nevada Copper Corp. (TSX:
NCU) (OTC: NEVDF) (“Nevada Copper” or the “Company”) today provided an
update regarding operations at the underground mine at its Pumpkin Hollow
project (the “Underground Mine”), as well as an update on financing
matters. All amounts below are stated in US dollars.

Operations Update
* Lateral Development: Development and penetration through the water bearing
dike has now been completed on the first crossing. Lateral development beyond
this crossing is now into solid ground at a pace consistent with mine plan
rates focused on establishing production from the East-North deposit. In
addition, with steel support beams recently installed, a second crossing is
expected in the coming weeks, further enhancing development rates.  
* Stoping: The Company has mined the second stope in the Alphabet Zone at a Cu
grade of 1.45% with backfilling scheduled to start in the coming week.
* Surface Ventilation Fans: Delivery of the surface fans remains on schedule
with installation and commissioning expected to be completed in Q4 2021.
“We are pleased to have completed our first crossing of the water dike
enabling our development rates to increase in line with our mine plan
expectations,” stated Mike Brown, Interim Chief Executive Officer of Nevada
Copper. “We look forward to continued production rate increases in Q3 and Q4
of this year.”

Financing Update
* KfW Credit Facility Amendment Discussions: On August 31, 2021, the Company
received an extension of the waiver from KfW IPEX-Bank (“KfW”), the
Company’s senior project lender, to September 30, 2021 to complete the
project completion test (the “Project Longstop Date”) under the amended
and restated credit agreement (“Amended KfW Facility”). The Company is in
discussions with KfW regarding a longer-term extension of the Project Longstop
Date into 2023; deferral of debt servicing by up to twenty-four months; and
the deferral of certain financial covenants under the Amended KfW Facility to
further support the ramp-up of the Underground Mine. The Company expects to
have the proposed extension and amendments finalized in the next month.
However, there can be no assurance that such extension and amendments will be
finalized by such times or at all. Failure to finalize the extension would
result in the Company being in default under the Amended KfW Facility. 

* Additional $13M of liquidity: The existing Promissory Note provided by Pala
Investments Limited, the Company’s largest shareholder (“2021 Promissory
Note”) has been amended (subject to regulatory approval) to allow total
borrowings of up to $55 million, providing an additional $13 million of
liquidity to the Company. Further draws by the Company are subject to agreed
use of proceeds. The 2021 Promissory Note has a maturity date of June 30,
2022, and bears interest at 8% per annum on amounts drawn. Pursuant to the
amendment, the 2021 Promissory Note now provides for an arrangement fee of 6%
on the full commitment amount of $55 million, which will be capitalized. The
proceeds will be used to fund the development and ramp-up of the Underground
Mine and related working capital needs. The amendment was reviewed and
approved by a committee of independent directors of the Company.
Qualified Persons

The technical information and data in this news release was reviewed by Greg
French, C.P.G., and Norm Bisson, P.Eng., for Nevada Copper, who are
non-independent Qualified Persons within the meaning of NI 43-101.

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 and processing
facility, which is now in the production stage, and a large-scale open pit
project, which is advancing towards feasibility status.

Mike Brown, Interim 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 mine development plans, production and
ramp-up plans, equipment installation, requested amendments to the Amended KfW
Credit Facility, and regulatory approval of the 2021 Promissory Note.

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 obtain extensions under and amendments to the
Amended KfW 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 and information. The forward-looking statements and
information contained herein are based upon assumptions management believes to
be reasonable, including, without limitation: no adverse development in
respect of the property at the Pumpkin Hollow project; no material changes to
applicable laws; the ramp-up of operations at the Underground Mine in
accordance with management’s plans and expectations; no worsening of the
current COVID-19 related work restrictions; reduced impacts of the COVID-19
pandemic in the medium-term and long-term; no material adverse change to the
price of copper from current levels; and the absence of any other factors that
could cause actions, events or results to differ from those anticipated,
estimated or intended. The forward-looking information and 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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