It took less than a week for Nevada Copper (TSX: NCU) to transition from “likely headed for creditor protection,” to filing for Chapter 11 bankruptcy protection. The Nevada-focused copper developer has formally filed for relief under the US Bankruptcy Code in the District of Nevada.
The filing follows the company failing to obtain funding or enter into a change of control transaction to enable it to continue to develop its Pumpkin Hollow project. As part of the filing, the firm has requested relief to enable it to continue to pay its employees and critical venders throughout the bankruptcy process.
READ: Nevada Copper Likely Headed For Creditor Protection As It Fails To Source Funding
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As part of the filing, a US$60 million debtor in possession financing has been obtained, of which it is asking for US$20 million to be available on an interim basis. Funding will not be used to continue operations, but rather to preserve and protect its assets.
As part of the filing, Tom Albanese has been appointed as Chair of the board, after previously serving as the Chair of the committee of independent directors. CEO Randy Buffington meanwhile has resigned as an executive and as a director, which follows the resignation of three directors last week ahead of the bankruptcy filing.
Nevada Copper last traded at $0.03 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.
