Nevada Copper Corp. is pleased to announce that it has filed and obtained a receipt for a final short form prospectus with the securities regulatory authorities in each of the provinces of Canada, except Quebec, in connection with its previously announced offering of 643,713,553 units of the Company (the “Units”) at a price of $0.15 per Unit for aggregate gross proceeds of approximately $97 million (the “Offering”).
Each Unit consists of one common share of Nevada Copper (a “Common Share”) and one-half of one Common Share purchase warrant (each whole Common Share purchase warrant a “Warrant”) of Nevada Copper. Each full Warrant will entitle the holder thereof to purchase one Common Share at a price of $0.20 per Common Share, for a period of 18 months following the closing of the Offering. The Company has granted the underwriters of the Offering an option (the “Over-Allotment Option”) to purchase up to an additional 23,790,000 Units. The Over-Allotment Option may be exercised to acquire additional Units, additional Common Shares and/or additional Warrants (or any combination thereof), so long as the number of additional Common Shares and additional Warrants does not exceed 23,790,000 Common Shares and 11,895,000 Warrants, respectively. The total number of Common Shares to be issued pursuant to the Offering (assuming the exercise of all Warrants issuable in connection with the Offering and the exercise in full of the Over-Allotment Option) is 1,001,255,329, which represents approximately 122.14% relative to the number of Common Shares currently issued and outstanding.
Pala Investments Limited and Castlelake L.P., through certain funds managed by it, the Company’s two largest shareholders, have agreed to subscribe for 263,452,677 Units (which is a reduction of 25,750,000 Units than previously disclosed in the Company’s press release dated July 15, 2020 as a result of the Offering being over-subscribed) and 149,902,852 Units, respectively, pursuant to the Offering. Certain other insiders of the Company intend to subscribe for an aggregate of 7,973,000 Units to the extent the Over-Allotment Option is exercised, which represents 11,959,500 Common Shares (approximately 1.46% relative to the number of Common Shares currently issued and outstanding) assuming exercise in full of the Warrants to be held by these insiders. These insiders are Stephen Gill, Evgenij Iorich, Michael Brown and Ernest (Ernie) Nutter, who are directors of the Company, André van Niekerk, the Chief Financial Officer of the Company, and John Nagulendran, a member of the Company’s advisory board.
The Offering is expected to close on or about July 28, 2020, subject to the receipt of all necessary regulatory and stock exchange approvals, including the approval of the Toronto Stock Exchange (“TSX”) and applicable securities regulatory authorities for the subscriptions relating to the insiders of the Company in connection with the Over-Allotment Option. The TSX has conditionally approved the listing of the Common Shares, Warrants and Common Shares underlying the Warrants on the TSX, other than the listing of any securities issuable under the Over-Allotment Option. The Company has applied to the TSX for conditional listing approval of the listing of the securities that are issuable in connection with the Over-Allotment Option and expects to receive this approval on July 30, 2020. The above additional disclosure is made pursuant to the Company’s reliance on the financial hardship exemption set out in Section 604(e) of the TSX Company Manual.
About Nevada Copper
Nevada Copper is a copper producer and owner of the Pumpkin Hollow copper project. Located in Nevada, USA, Pumpkin Hollow has substantial reserves and resources including copper, gold and silver. Its two fully permitted projects include the high-grade underground mine and processing facility, which is now transitioning to the production stage, and a large-scale open pit project, which is advancing towards feasibility status.
NEVADA COPPER CORP.
www.nevadacopper.com
Evan Spencer, President and CEO
For further information contact:
Rich Matthews, Investor Relations
Integrous Communications
rmatthews@integcom.us
+1 604 355 7179
Contact Information:
Rich Matthews, Investor Relations
Integrous Communications
rmatthews@integcom.us
+1 604 355 7179
Tags:
, Wire, Disclosure Newswire, United States, English
Contact Information:
Rich Matthews, Investor Relations
Integrous Communications
rmatthews@integcom.us
+1 604 355 7179
