The Vancouver-based miner stated the emergency funding can be used to help care and upkeep at Pumpkin Hole, in addition to different monetary wants through the Chapter 11 course of. The miner had stated earlier within the yr that it might want about $10 million to maintain Pumpkin Hole idled.
Nevada Copper additionally stated it might request ultimate approval for the remaining $40 million from Elliot to make sure liquidity for the rest of the restructuring interval throughout which it can proceed paying staff’ wages and advantages.
Elliott owns two-thirds of Triple Flag Treasured Metals Corp. (TSX, NYSE: TFPM), a streaming firm that invested in Nevada Copper’s operations.
Earlier than final week’s chapter submitting, Nevada Copper had garnered curiosity from two unnamed potential consumers, however was unable to finalize a take care of both, it stated.
The corporate had stated earlier this yr it required further funding to satisfy ongoing challenges at Pumpkin Hole, the place it restarted operations within the fourth quarter of 2023. Points encountered included a build-up of water underground, an incomplete ore dealing with system and surprising bottlenecks that precipitated repeated shutdowns of the processing plant.
The operational setbacks precipitated prices to spiral and its key backers, together with Pala Investments Ltd. and Mercuria Power Group Ltd., hesitated to sink more cash into the operation.
Nevada Copper reported income of simply $3.6 million for the quarter ended March 31, 2024, whereas prices climbed to $18.2 million.
The corporate is present process a delisting evaluation by the Toronto Inventory Alternate, and its shares are presently halted from buying and selling.