Nevada Copper has signed a deal with Scotia Bank to raise $97mn to finance the company’s copper mine restart in the last quarter of the year.
Under the agreement, Scotia Bank has bought 643.7 million units of Nevada Copper’s shares to sell them further into the market to raise the required amount. The money will also be used to accelerate the development and operations at the miner’s Pumpkin Hollow underground mine in Yerington, Nevada.
The Canadian miner said in a press release that of the total amount raised, the company plans to repay its $30mn loan taken from Pala Securities in March.
Pumpkin hollow is set to produce close to 30,000mt of contained copper once it begins operations.
Nevada noted that the resumption of operations was subject to an assessment of market conditions. It has also filed for a delisting from the Toronto Stock Exchange (TSX), citing exemptions for financial hardships.