Nevada Copper et al., CCAA

Nevada Copper et al., a group of Reno, Nevada-based copper mining companies, had their US Chapter 11 proceedings recognized under Part IV of the CCAA on June 21.

The companies list liabilities of approximately $493.1 million, including secured liabilities of $279.2 million, $188 million of which is owed to a syndicate led by KfW IPEX-Bank GmbH.

The bulk of the companies’ operations are focused on the development of the Pumpkin Hollow project, a mining development located about 90 kilometers southeast of Reno, Nevada.

Nevada Copper Corp. (TSX:NCU), one of the debtors, is incorporated and has a registered head office in BC, but has no business operations or assets in BC and cannot operate independently from the mining business in Nevada.

In the third quarter of 2022, certain geotechnical challenges in the Nevada mining area caused mining operations to be suspended. While the companies were eventually able to restart ore processing operations in October 2023, those operations were periodically paused to address commissioning complications and to stabilize operating conditions. As a result, the companies could not maintain continuous processing operations necessary to declare commercial production in the fourth quarter of 2023 as planned.

This lack of production deprived the companies of operating revenue and created a sizeable gap between their available cash and funding needs. The companies pursued a marketing and sale process but were unable to consummate a binding transaction on a viable timeline.

A&M is the information officer.

Counsel is Torys for the companies, Miller Thomson for the directors, Cassels for the information officer, BLG for Trisura Guarantee Insurance Company, McCarthy Tétrault for KfW IPEX-Bank GmbH, Bennett Jones for Mercuria Investments and Blakes for the DIP lenders.