Vancouver-based Nevada Copper said on Thursday that it urgently needed funding to maintain operations and complete the commissioning and ramp-up of its Pumpkin Hollow underground mine in Yerington, Nevada.
The company has been in discussions with key stakeholders and other parties to secure funding or enter into a change of control transaction. However, Nevada Copper said it had not received a binding offer for such a transaction, nor any sufficient ordinary course funding to continue operations.
While Pala Investments and other existing stakeholders have provided limited interim funding, they were under no obligation to continue doing so and these stakeholders have indicated they may not provide further financial support.
As a result, Nevada Copper's cash position has become critically low, leading the company to significantly scale down operations at the Pumpkin Hollow.
The company has also received resignation notices from directors Evgenij Iorich and Stephen Gill, both nominees of Pala, effective June 5.
Without securing sufficient funding immediately, Nevada Copper said it would be forced to seek creditor protection as it would be unable to continue its business operations.
The copper miner’s stock plunged 67% on the TSX-V on Thursday to C$0.03 apiece.