NEW YORK Nevada Copper Corp. has closed a $200-million senior secured loan facility and copper concentrate agreement with RK Mine Finance, a division of hedge fund Red Kite Group.
The financing will be put toward the development of the Vancouver, British Columbia-based miners Pumpkin Hollow copper project in Yerington, Nevada.
The loan matures in January 2019 at an annual interest rate of Libor plus 6 percent.
Under the concentrate offtake agreement, Nevada Copper will sell a percentage of copper concentrates from its Eastern deposits to Red Kite over the life of the mine. The agreement does not include rights to any future copper concentrate production from the North and South deposits.
"We are extremely pleased with the closing of this financing with Red Kite, which further validates and provides independent confirmation that the Pumpkin Hollow project will support a low-risk and economically robust copper mine," Nevada Copper president and chief executive officer Giulio Bonifacio said in a statement.