KfW IPEX-Bank amended Nevada Copper’s existing senior credit facility, providing for an aggregate of $12.2 million in payment deferrals through the re-sculpting of certain amortization and debt service reserve account payments.
Nevada Copper also completed the following related transactions:
- An amendment to the existing metals purchase and sale agreement with an affiliate of Triple Flag Precious Metals that provides for an additional $15 million in payments to Nevada Copper, comprised of a $10 million payment on May 1, 2020 and an additional $5 million to be paid through the reinvestment of 50% of the value of metal deliveries received by Triple Flag Precious Metals’ affiliate under the agreement.
- New net smelter return royalty agreements with an affiliate of Triple Flag Precious Metals over Nevada Copper’s Open Pit project and Tedeboy exploration property. Nevada Copper has received an aggregate of $20 million as the purchase price for these royalties.
- Triple Flag Precious Metals was issued an aggregate of 15 million common share purchase warrants of Nevada Copper at an exercise price of C$0.225 ($0.16).
- A new convertible loan facility with Pala Investments in the principal amount of $30 million, which extends and replaces the $30 million unsecured credit facility Nevada Copper entered into with Pala on November 29, 2019, as amended. Nevada Copper and Pala intend to seek additional investors to which Pala may syndicate a portion of the convertible loan up to a maximum amount of $12 million.
- A backstop agreement among Pala, Nevada Copper and an affiliate of Triple Flag Precious Metals, providing for up to $20 million which will be available for Nevada Copper to call on if required until December 31, 2021 if it is unable to raise capital from other sources.
Nevada Copper is a copper producer and owner of the Pumpkin Hollow copper project.