Nevada Copper announces C$97 million bought deal public offering

On July 13, 2020, Nevada Copper Corp. ("Nevada Copper") announced that it entered into an agreement with a syndicate of underwriters—led by Scotiabank and including RBC Capital Markets and National Bank Financial Inc. as joint bookrunners, and Haywood Securities—pursuant to which the underwriters agreed to buy on a bought deal basis 643,713,553 units of Nevada Copper at a price of C$0.15 per unit for aggregate gross proceeds of approximately C$97 million.

Under the terms of the agreement, each unit consists of one common share of Nevada Copper 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 C$0.20 per share, for a period of 18 months following the closing of the offering. The offering is expected to close on July 27, 2020.

Nevada Copper has also granted the underwriters an option, exercisable at the offering price for a period of 30 days following the closing of the offering, to purchase up to an additional 23,790,000 units to cover over-allotments, which if exercised in full would result in additional gross proceeds to the company of approximately C$3.6 million. The option is exercisable to acquire units, common shares and/or warrants (or any combination thereof) at the discretion of the underwriters.

The net proceeds from the offering will be used to fund the company's operations, including:

• the continuance of its previously-announced accelerated mine development plan and re-start and ramp-up production from its Pumpkin Hollow underground mine;
• to repay the convertible loan;
• to repay other outstanding indebtedness (including short-term financing provided by Pala Investments Limited, currently in the amount of US$9.6 million); and
• for general corporate purposes.

Further information can be found on Globe Newswire's website.

Nevada Copper is a copper producer and owner of the Pumpkin Hollow copper project.