Nevada Copper, the financially troubled owner of the Pumpkin Hollow copper mine, has initiated a sales process as part of its ongoing Chapter 11 bankruptcy restructuring.
The company has appointed Moelis & Company to oversee the sale.
The Bankruptcy Court of Nevada approved an interim debtor-in-possession (DIP) financing on Monday, allowing Nevada Copper to proceed with an initial borrowing of $20-million from a previously announced $60-million DIP financing commitment. This funding will support the company’s care-and-maintenance activities and other needs during the restructuring process.
Nevada Copper plans to seek final court approval for the remaining $40-million of the DIP financing to ensure sufficient liquidity throughout the restructuring period. In addition, the court has authorised the continuation of wages and benefit programmes for the company’s employees.
As part of the restructuring, Nevada Copper has announced leadership changes. Gregory Martin has been appointed interim president and CEO and Matthew Anderson has been named interim CFO. Both executives previously held senior financial positions within the company.
The company is also facing a delisting review by the TSX and its shares are currently halted from trading.