Nevada Copper Corp. has filed for Chapter 11 bankruptcy protection in Nevada, citing debts of up to $1 billion. The copper mining company plans to cease operations and liquidate its assets.
Nevada Copper Files For Chapter 11 Bankruptcy : Financial Strain and Interim Financing
Nevada Copper entered Chapter 11 with $60 million in debtor-in-possession financing, requesting to access $20 million immediately. The company reported debts between $500 million to $1 billion, with assets valued between $100 million to $500 million. Nevada Copper owns the Pumpkin Hollow mine in Nevada, rich in copper, gold, and silver.
Legal and Financial Advisers
The company is represented by Allen Overy Shearman Sterling, Torys LLP, and McDonald Carano LLP. Moelis & Co. LLC serves as the financial adviser, while AlixPartners is the restructuring adviser.
Nevada Copper Files For Chapter 11 Bankruptcy : Impact on Employees and Vendors
Nevada Copper has asked the court for permission to continue paying employee salaries and benefits during the bankruptcy process. This request is part of a broader effort to secure approval for the $60 million in DIP financing, of which $20 million is sought for immediate use.
Changes in Leadership
In tandem with the bankruptcy filing, Tom Albanese was appointed Chair of the Board of Directors. Randy Buffington resigned as President and CEO, as well as a director. The board expressed gratitude for Buffington’s service.
About Nevada Copper
Nevada Copper owns the Pumpkin Hollow project in Nevada, which includes a high-grade underground mine and a large-scale open pit project. Despite significant reserves of copper, gold, and silver, the company failed to secure additional funding or a change of control transaction, leading to the bankruptcy filing.
Nevada Copper Files For Chapter 11 Bankruptcy : Forward-Looking Statements
This announcement includes forward-looking statements regarding the bankruptcy process and potential outcomes. Risks and uncertainties may cause actual results to differ materially from those anticipated.
