Nevada Copper Corp. (TSX: NCU) has closed a non-brokered private placement with Pala Investments Limited, its long-term cornerstone shareholder.
Nevada Copper issued 3,712,121 common shares to Pala at a subscription price of $0.66 per common share, which represents a 10% premium to the volume weighted average price on the Toronto Stock Exchange for the 20 trading days ending May 18, 2017, for gross proceeds to Nevada Copper of approximately $2,450,000.
As a result of the financing, Pala now holds an aggregate of 44,001,262 common shares, representing approximately 47.2% (increasing from 45.7%) of the total issued and outstanding common shares of Nevada Copper, which will total 93,178,482 common shares. In addition, Pala continues to hold its existing warrants and convertible loans.
The conversion price for the US $5,000,000 tranche of the convertible loan from Pala, previously announced and funded earlier this year, will be adjusted in accordance with the terms of the loan from $0.90 to $0.76, which represents 115% of the subscription price for the private placement.
Nevada Copper intends to use proceeds to fund evaluation of various project development options at Pumpkin Hollow including advancing feasibility and technical studies for the construction of a smaller-scale, lower capital cost and higher grade underground project as previously announced and for working capital purposes.
photo credit: Nevada Copper