Nevada Copper Corp (TSX:NCU, OTC:NEVDF) told investors that it has completed its previously announced public offering of units, raising gross proceeds of approximately C$52.9 million
The company noted in a statement that the offering included a partial exercise of the over-allotment option by a syndicate of underwriters that included Scotiabank (TSX:BNS), Jett Capital LLC, National Bank Financial, RBC Capital Markets, Research Capital Corporation, and Haywood Securities Inc.
Under the offering, it issued an aggregate of 196,038,400 units, including 22,333,400 units under the over-allotment option, for C$0.27 per unit, with each unit consisting of one common share and one-half of a common share purchase warrant. Each warrant is exercisable for one common share for C$0.34 per warrant share until September 30, 2024.
The company said it plans to use the net proceeds, as well as those contemplated under a financing package agreement announced in May to continue funding the restart and ramp-up of its Pumpkin Hollow underground mine and for general corporate purposes, including working capital, to achieve nameplate production capacity of 5,000 tons per day by the end of 2023.
Nevada Copper's largest shareholder Pala Investments Limited and significant shareholder Mercuria Energy Holdings participated in the offering, taking their respective shareholdings in the company to 47% and 23% on a non-diluted basis.
It said Pala’s ownership interest will increase to 67% after it exercises the balance of the common share purchase warrants issued in an October 2022 financing. This is subject to the expiry of a review period or clearance in respect of anticipated filings under the US Hart-Scott-Rodino Antitrust Improvements Act of 1976 to permit it to exceed a majority ownership interest in the company, which is expected within about 60 days.
Contact the author at stephen.gunnion@proactiveinvestors.com