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News Jun 04, 2019

Nevada Copper’s Pumpkin Hollow Project Financing

Shearman & Sterling assisted Nevada Copper Corp. (Nevada Copper) and its wholly owned subsidiary, Nevada Copper Inc., in the structuring, negotiating and closing of their recently completed project financing package for the Pumpkin Hollow underground copper mining project. Nevada Copper is a Canadian TSX-listed company which wholly owns the Pumpkin Hollow project located in Yerington, Nevada.

During the month of May, Nevada Copper achieved financial closing for its $115 million project financing with the German lending institution, KfW IPEX-Bank, supported by a UFK (German government) guarantee. In addition to the KfW project finance facility, Nevada Copper Inc. has also entered into a $35 million working capital facility with Concord Resources and offtake agreements with Aurubis and Concord Resources. Finally, these facilities were layered onto a $70 million stream financing in September 2018 which Nevada Copper Inc. had entered into with Triple Flag.

It is a significant milestone for both Nevada Copper and the industry that Nevada Copper achieved financial closing of a KfW/UFK project financing, combined with a secured stream financing from Triple Flag and a secured financing provided by Concord Resources in the form of an advanced payment working capital line. It confirms that these varied sources and forms of funding can be brought together to provide funding to the mining sector, including to smaller sized companies such as Nevada Copper with the backing of strong shareholders and experienced management teams.

Shearman & Sterling acted as New York and English counsel to Nevada Copper.

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