Pala Closes $20MM Nevada Copper Bridge Loan Facility
Nevada Copper announced it closed a $20 million bridge loan facility with Pala Investments.
The initial term of the facility is four months, with up to two additional two month extensions. The facility will be drawn in $5 million tranches. The annual interest rate is 10% and with a 2.7% arrangement fee payable during the initial term. The facility is secured against the company’s assets, but is subordinate to the security granted in connection with the $200 million senior credit facility announced by the Company on March 28, 2013.
Giulio Bonifacio, president and CEO, comments, “We are very pleased that Pala, our major shareholder, has provided their continued support by way of this facility. The facility provides additional time to fully optimize the funding mix for the balance of Stage 1 capex, while also allowing the Company to further evaluate the various strategic opportunities currently under review.”
The company’s advanced-stage Pumpkin Hollow project in Nevada consists of a fully permitted 6,500 tons/day Stage 1 underground copper mine development, currently in construction, and a nearby Stage 2, 70,000 tons/day, open-pit project in the permitting phase.