Nevada Copper Corp (TSX: NCU) is looking to raise funds. The firm last night after the bell announced an overnight marketed public offering of units, with the firm aiming to raise $75.0 million in gross proceeds.
The offering will see the sale of units of the company, with each unit containing one common share and one half of a common share purchase warrant. Each warrant is to be valid for a period of eighteen months following the closing of the transaction.
Current pricing of both the units and the associated warrants has not yet been finalized, and is expected to be firmed up once marketing is completed on the offering. Once finalized, the offering is to be lead by Scotiabank.
Sponsored · First Phosphate Corp.
Pala Investments has agreed to take a significant portion of the offering as a means of maintaining its current ownership in the company. Proceeds from the offering are to be used to replace a tranche of funding that was to be provided by Pala as a means of strengthening Nevada Copper’s balance sheet. Upon closing, an amended credit facility will be entered into with Pala to consolidate debts owing, and extend the maturity of such debt to 2026.
Proceeds from the offering overall will be used for the development of the firms Pumpkin Hollow project and the repayment of bridge loans advanced under a promissory note from Pala.
The financing is currently slated to close November 29.
Nevada Copper Corp last traded at $1.01 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
