Nevada Copper Closes US$200 Million Loan Facility and Concentrate Off-Take Agreement

Thu Mar 28, 2013 6:01pm EDT

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Marketwire

Nevada Copper Corp.

March 28, 2013 - 06:01:39 PM

Nevada Copper Closes US$200 Million Loan Facility and Concentrate Off-Take
Agreement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 28, 2013) - Nevada Copper
Corp. (TSX:NCU) ("Nevada Copper" or the "Company") is pleased to announce the
closing of a US$200 million senior secured loan facility (the "Loan Facility")
and copper concentrate off-take (the "Concentrate Off-Take") agreement with RK
Mine Finance ("Red Kite"). Proceeds from the Loan Facility will be used for
construction of Nevada Copper's underground mining operation at its 100% owned
Pumpkin Hollow copper project located near Yerington, Nevada. 

A summary of the Loan Facility and Concentrate Off-Take terms are as follows:



--  US$36 million has been paid to Nevada Copper. This cash amount, combined
    with the Company's current treasury, provides approximately US$65
    million (excluding marketable securities currently valued at
    approximately US$17 million) to continue current shaft sinking
    activities, commence detailed engineering and secure long lead time
    equipment; 
--  US$15 million will be advanced on receipt of the key State permits
    allowing for the commencement of full construction of an underground
    mining operation. These permits are expected in Q2-2013 (See February
    15, 2013 News Release); 
--  US$10 million will be advanced on passage of the Lyon County Bill and
    land conveyance to the City of Yerington (See February 15, 2013 News
    Release). This bill has been introduced on a bi-partisan basis in both
    the Senate and U.S. House of Representatives. Passage of the bill does
    not affect the development timeline of the underground mining operation;
--  US$139 million (US$149 million should passage of the land bill be
    delayed) will be advanced on the completion of certain other project
    milestones, including completion of the 24 foot diameter, 2,200 foot
    production sized shaft; 
--  The Loan Facility has a six year term maturing on January 3, 2019, with
    interest payable at an annual rate of LIBOR plus 6%. The loan and
    interest are repayable in equal quarterly installments commencing April
    2015, and mandatory prepayments equal to 20% of excess cash, as defined
    in the Loan Facility are required. The Company has the ability in
    certain circumstances to repay the loan in full without penalty prior to
    maturity. The loan is secured against all current and future assets of
    the Company and its subsidiaries. As part of the loan agreement, the
    Company has paid an origination fee of 3% of the principal amount of the
    loan; and, 
--  Under the terms of the Concentrate Off-Take agreement, the Company will
    sell to Red Kite, for the life of the mine on the Eastern deposits (East
    & E2 underground mineable deposits and JK34 zone), such percentage of
    copper concentrates produced from the Eastern deposits on the Pumpkin
    Hollow project as is equal to the amount advanced by Red Kite to the
    Company under the loan agreement as a percentage of the US$200 million
    maximum principal amount of the loan. 
    
    The Concentrate Off-Take agreement does not include any rights to future
    copper concentrate production from the open-pittable North and South
    deposits and provides for benchmark-referenced treatment and refining
    charges, and standard payment factors for contained copper, gold and
    silver. 



Mr. Giulio Bonifacio, President and CEO commented: "We are extremely pleased
with the closing of this financing with Red Kite which further validates and
provides independent confirmation that the Pumpkin Hollow project will support
a low-risk, and economically robust, copper mine. This financing will satisfy
100% of our capital requirements in 2013 on a non-dilutive basis while more
importantly allowing us to move to commercial production in 2015 subject to
receipt of permits which are expected in Q2-2013. We envisage additional
project capital as required in 2014 to be funded by way of a precious metal
stream, subordinated debt and a modest level of equity. Another compelling
feature of this financing is that it will allow Nevada Copper the flexibility
to move forward on funding the larger open pit operation by way of precious
metal stream, project debt, concentrate off-take and/or strategic partnership
without restriction as the Red Kite transaction is specific to the underground
operation only."

Status of Site Construction Activities

The surface facilities at the East shaft site are nearing completion, with
commissioning scheduled for April. These facilities include a production-sized
head-frame and a 12 foot diameter double drum hoist. The 24 foot diameter,
2,200 foot production shaft, which will be concrete-lined, was developed to
the 99 foot "pre-sink" level, allowing work to proceed on the shaft sub-collar
and head-frame foundations, head-frame erection and hoist commissioning. The
head-frame is essentially complete. Dump chutes and related equipment have
arrived on site and installation is commencing. Cable tray, lighting and door
and dump controls are being installed, as well as utilities in the shaft
sub-collar. 

The hoist contractor has completed mechanical installation of the hoist and
the hoist house building is complete. Electrical cable installation is
currently in progress. The hoist control room has been placed in its final
position and the control console installed. Foundations have also been placed
for the Galloway (sinking platform) winches and the Mary-Anne service hoist,
and the winches have been set in place. The power unit for the winches is
being installed.

Electrical cable installation and testing will be ongoing through March.
Rope-up and final hoist commissioning is scheduled for April. Hoist
commissioning will allow for resumption of shaft sinking which is expected to
continue through 2013 with completion by Q1-2014. Head-frame and hoist photos
can be seen on our project website at www.pumpkinhollowcopper.com. 

About Red Kite

RK Mine Finance specializes in providing mining companies with project
financing and metal off-take agreements for initiation or expansion of mine
production and is part of the Red Kite Group. The Red Kite Group is one of the
largest metal merchants in the world and has over US$3.1 billion under
management as at December 31, 2012, with US$1.7 billion dedicated exclusively
to the mine finance business. As a result of their extensive experience, the
mine finance team is able to both tailor and expedite financing solutions for
mining companies.

The Red Kite Group operates across the global metals industry from offices in
Bermuda, Denver, Hong Kong, London, New York, Shanghai and Sydney. Investors
in Red Kite funds include college endowments, foundations, family offices,
pensions and other institutional investors. For additional information about
Red Kite please visit www.rkminefinance.com.

About Nevada Copper

Nevada Copper has 80.5 million shares outstanding and is well funded for
purposes of advancing its 100% owned Pumpkin Hollow copper project to
commercial production in 2015. For additional information about Nevada Copper
please visit our website at www.nevadacopper.com.

NEVADA COPPER CORP. 

Giulio T. Bonifacio, President & CEO 

FOR FURTHER INFORMATION PLEASE CONTACT: 
Nevada Copper
Eugene Toffolo
VP, Investor Relations & Communications
604-683-8266 or Toll free: 1-877-648-8266
etoffolo@nevadacopper.com


Nevada Copper
Robert McKnight, P.Eng., MBA
Executive Vice President and CFO
604-683-1309
bmcknight@nevadacopper.com
www.nevadacopper.com
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