EQUIPMENT

— NEVADA COPPER SAYS — More funding needed for ramp-up

Over the next four months, Nevada Copper (TSX: NCU) would require additional funds to complete its ramp-up of operations at the underground Pumpkin Hollow mine, the firm said on Tuesday.

Nevada Copper has decided to adjust its mine design due to geotechnical improvements stemming from definition testing in the Upper East South region, which now allows the business to limit the size of some early stops in a localized area where initial ramp-up ore is scheduled. This move is supposed to de-risk the project further, although in the near term, it will raise costs.

The copper miner said that it is already in negotiations with its senior investor, KfW-IPEX Bank, and has received a third-party term sheet for an additional $20-$30 million credit line to finance its expanded cash requirements. Discussions with other alternative sources of financing are still underway, it said. The largest shareholder of Nevada Copper, Pala Investments Limited, has announced that

The largest shareholder of Nevada Copper, Pala Investments Limited, has announced that it will continue to provide financial help for the project until the end of the year when the company expects the funding to be completed.

it will continue to provide financial help for the project until the end of the year when the company expects the funding to be completed.

In the meantime, Pumpkin Hollow's underground lateral production continues at its planned pace, with ore grades identified in ongoing development reconciling well with resource model grades, and hoisted ore development grades increasing with stope development as predicted, the company stated.

During the month of October, steelwork was finished in the main shaft, with work ongoing to complete the remaining loading pocket.

Nevada Copper said it plans to use the main shaft to pass resources, equipment and people by mid-November, allowing the eastern north vent shaft to be used primarily for the production of ore and waste movement, resulting in a planned rise in the pace of ore hoisting.

Staged commissioning has already begun for the main shaft material handling device. The organization is checking the contact mechanism and the interaction of these parts to ensure that until the underground conveyor is mounted later in the quarter, the ramp-up will be accelerated.

The output of processing plants continued to rise with a 10 percent improvement in recoveries in October from September. Over the same era, concentrate production rose 140 percent.

After the new operating report, shares of Nevada Copper plummeted 18.7 percent by midday Tuesday. The business has a C$96.7 million market capitalization.