YERINGTON, Nev., July 4, 2022 (GLOBE NEWSWIRE) — Nevada Copper (TSX: NCU) (NEVDF) (FSE: ZYTA) (“Nevada Copper” or the “Company”) is pleased to announce that it has agreed non-binding terms with its lead lender, KfW IPEX-Bank (“KfW‘) and its major shareholder, Pala Investments Limited (“Palace”), for a loan of up to US$70 million, through a new extension tranche of the existing senior credit facility with KfW. This financing would be provided by Pala, with the possible participation of other lenders. Of the total amount, US$50 million will be committed to be advanced by the lenders (including the remaining amount of the previously announced promissory note up to US$20 million provided by Pala) and US$20 million could be available for future drawing by the Company. on an uncommitted basis. The Company is in discussions with KfW, Pala and other lenders with the aim of executing binding agreements during the month of July 2022.

If implemented, the proposed financing package will provide access to significant additional liquidity to the Company to maintain the assets of the Pumpkin Hollow underground copper mine (the “underground mine”) and to pursue certain projects such as the completion of the dyke crossing and the advancement of the feasibility study work of the open pit mine project, and to explore and advance discussions on other financing and strategic options .

The proposed financing package is subject to, among other things, the negotiation of terms with KfW, Pala and the Company’s other lenders, the negotiation and execution of definitive documentation, the satisfaction of conditions precedent and the regulatory approval. The consent of certain of the Company’s other lenders will be required in respect of the financing arrangement (including the consent of the Company’s working capital provider and stream funder), and there can be no assurance that such consents will be obtained.

While negotiating the financial package, the Company intends to make further draws under Pala’s previously disclosed US$20 million promissory note to meet its immediate cash requirements. Additional drawdowns under the promissory note are subject to the agreed use of proceeds and the conclusion of satisfactory arrangements with certain creditors and vendors (which may not be concluded).

There can be no assurance that final binding agreements for the proposed financing package as set forth above will be reached, that relevant consents can be obtained, that transactions will be finalized, or that further drawings under the Pala Promissory Note will be available. If further drawdowns are not available, the financing package is not completed or satisfactory arrangements are not implemented with the sellers, then in the absence of obtaining further financing and/or taking other arrangements, the Company will not be able to continue its business in the ordinary course and may need to initiate creditor protection proceedings. The Company’s creditors may also seek to initiate enforcement actions, including the enforcement of their security interest in the Company’s assets.

As previously announced, given the Company’s liquidity constraints, the Company has not made payments that were due to certain creditors and vendors, including its mining contractor Redpath. As a result, the Company has received a notice of default from Redpath, which has indicated that it intends to pursue its available remedies. Notwithstanding the default, the Company and Redpath have entered into an agreement on the suspension of mining work at the underground project and on limited work to be carried out in the future in order to protect the assets of the Company.

About Nevada Copper

Nevada Copper (TSX: NCU) is a copper producer and owner of the Pumpkin Hollow copper project. Located in Nevada, USA, Pumpkin Hollow has significant reserves and resources including copper, gold and silver. Its two fully licensed projects include the high-grade underground mine and processing facility, which are now in production, and a full-scale open-pit project, which is progressing towards feasibility status.

Randy Buffington
President and CEO

For more information, please visit the company’s website at www.nevadacopper.comor contact:

Tracey Thomas | Vice President, IR and Community Relations
[email protected]
+1 775 391 9029

Caution Regarding Forward-Looking Statements
This press release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable Canadian securities laws. All statements in this press release, other than statements of historical facts, are forward-looking statements. Such forward-looking information and forward-looking statements specifically include, but are not limited to, statements relating to funding requirements, entering into agreement on obtaining additional funding from KfW, Pala and other lenders , including obtaining the consent of the Company’s lenders for the financing discussed above, entering into satisfactory arrangements with the sellers and the Creditor Protection Proceedings.

Forward-looking statements and information include statements regarding management’s expectations and beliefs. Often, but not always, forward-looking statements and forward-looking information can be identified by the use of words such as “anticipates”, “expects”, “potential”, “is expected”, “planned”, “is targeted”, “budget”, “planned”, “estimates”, “anticipates”, “intends”, “anticipates” or “believes” or their negative aspects or variations of such words and expressions or statements that certain actions , events or results “may”, “could”, “might”, “could” or “will” be taken, occur or be realized. Forward-looking statements or information should not be construed as guarantees of performance and results. are subject to known and unknown risks, uncertainties and other factors that may cause actual results and events to differ materially from any future results, performance or achievements expressed or implied by such statements. or computer ons prospective.

These risks and uncertainties include, but are not limited to, those relating to: additional capital requirements and no assurance can be given as to the availability thereof; the outcome of discussions with creditors and sellers; a possible creditor protection proceeding; the Company’s ability to complete the ramp-up of the underground mine within anticipated timeframes and cost estimates; the impact of COVID-19 on the Company’s business and operations; the state of financial markets; history of losses; dilution; adverse events related to milling operations, construction, development and ramp-up, including the Company’s ability to resolve underground development and processing plant issues; ground conditions; cost overruns related to the development, construction and ramp-up of the underground mine; loss of material properties; interest rates rise; Mondial economy; limited production history; future fluctuations in metal prices; speculative nature of exploration activities; periodic interruptions to exploration, development and mining activities; environmental risks and liability; industrial accidents; failure of processing and mining equipment to perform as intended; labor disputes; supply issues; the uncertainty of production and cost estimates; interpretation of drilling results and estimation of mineral resources and reserves; changes in project parameters as plans continue to be refined; possible variations in ore reserves, mineralization grade or recovery rates from management’s expectations and the difference may be material; legal and regulatory proceedings and community actions; accidents; the title matters; regulatory approvals and restrictions; increased costs and physical risks associated with climate change, including extreme weather events, and new or revised climate change regulations; permits and licenses; dependence on management information systems and cybersecurity risks; the volatility of the market price of the Company’s securities; Insurance; competition; hedging activities; currency fluctuations; the loss of key employees; other risks of the mining industry as well as the risks discussed in the Company’s MD&A for the year ended December 31, 2021 and the quarter ended March 31, 2022 and in the section entitled “Risk Factors” of the annual report of the Company. Information Statement dated March 31, 2022. The forward-looking statements and information contained in this press release are based on assumptions that management believes are reasonable, including, without limitation: no adverse developments regarding the ownership or operations of the project ; no material changes to applicable laws; ramping up operations at the underground mine in accordance with management’s plans and expectations; no worsening of current work restrictions related to COVID-19; reduced impacts of COVID-19 in the future; the Company will be able to obtain sufficient additional financing to complete the ramp-up, no material adverse change in the price of copper from current levels; and the absence of any other factor that could cause actions, events or results to differ from those anticipated, estimated or intended.

Forward-looking information and statements are made as of the date hereof. The Company disclaims any intention or obligation to update any forward-looking statements or information, except as required by law. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in the forward-looking information and statements, there may be other factors that could cause that the actions, events or results are not as anticipated, estimated or anticipated. Specific reference is made to “Risk Factors” in the Company’s MD&A for the year ended December 31, 2021 and the quarter ended March 31, 2022 and to “Risk Factors” in the Company’s Annual Information Form dated March 31, 2022. , for a discussion of factors that may affect forward-looking statements and information. Should one or more of these risks or uncertainties materialize, should other risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results and events could differ materially from those described in the forward-looking statements and information. . For further information on the Company and the risks and challenges of its business, investors should consult the documents filed by the Company which are available at

The Company does not guarantee that forward-looking statements and information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on any forward-looking statements or information.