Nevada Copper (NCU.TO) has announced it has signed an agreement with Pala Investments whereby Pala will provide a bridge loan of $20M which will mature in 4 months from now. The interest rate of the facility is 10% and a 2.7% arrangement fee will be due. An interest rate of 10% could be considered to be quite expensive for a project in Nevada, but don’t forget this debt facility is subordinated to the earlier executed $200M credit facility agreement. As such, Pala Investments – which is also Nevada Copper’s largest shareholder – position could be considered the same as an unsecured creditor.
This $20M facility will allow Nevada Copper to finalize the total financing package for the first stage of the Pumpkin Hollow project. As the CEO of Nevada Copper is one of the company’s largest shareholders, we remain assured that the company will be able to minimize potential dilution. Nevada Copper is up 58% since our initial report and we feel there’s more to come. We will release an update report on Nevada Copper shortly.
> Click here to read the press release
Disclosure: The author holds a long position in Nevada Copper. Nevada Copper is a sponsor of the website. Please see our disclaimer for current positions.
