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(Kitco News) – Nevada Copper (TSX:NCU) today announced that it has arranged a $70 million loan with lead lender, KfW IPEX-Bank, and its largest shareholder, Pala Investments.
The company has already received notices of default from creditors and sellers, including its mining contractor Redpath.
The company said the loan will provide a cash cushion.
“If implemented, the proposed financing package will provide access to significant additional cash for the company to maintain the assets of the Pumpkin Hollow underground copper mine and to pursue certain projects such as the completion of the crossing of the seawall and progressing feasibility study work on the open pit project, and to explore and advance discussions on other financing and strategic options,” the company wrote.
If the financing cannot be settled, Nevada Copper warns that it “…will not be able to continue its operations in the normal course of business and may have to initiate creditor protection proceedings.”
Nevada Copper (TSX: NCU) is a copper producer and owner of the Pumpkin Hollow copper project, located in Nevada, United States.
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