Nevada Copper Enters Bankruptcy Protection, Appoints New Chairperson

Nevada Copper Enters Bankruptcy Protection, Appoints New Chairperson

Cash-strapped Nevada Copper has filed for bankruptcy protection under Chapter 11, initiating a restructuring process that includes halting operations at its Pumpkin Hollow mine. President and CEO Randy Buffington has resigned, and mining veteran Tom Albanese, the company’s lead independent director, has been appointed as the new chairperson.

The move follows Nevada Copper’s recent announcement of significantly scaling down operations at the Nevada-based copper mine due to the failure to secure necessary funding. The Vancouver-based company had indicated earlier this year that additional funds were required to address ongoing challenges at Pumpkin Hollow, where operations were restarted in the fourth quarter of 2023. Issues included underground water build-up, an incomplete ore handling system, and unexpected bottlenecks causing repeated plant shutdowns.

As part of the Chapter 11 process, Nevada Copper has requested standard support measures for its employees and essential vendors. The company is seeking court approval to continue paying employee salaries, wages, and benefits, despite any outstanding amounts prior to filing for bankruptcy.

To ensure liquidity during the restructuring period, Nevada Copper has secured a commitment for $60 million in debtor-in-possession financing, requesting $20 million of this amount on an interim basis, pending court approval.

Nevada Copper’s shares fell to a new low of C$0.030 on Friday, down over 78% for the year, with a market capitalization now at C$43.2 million ($31.4 million). icon

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