Caterpillar Financial Services Corporation ("Cat Financial") completed a US$24 million equipment finance facility ("Equipment Financing") with Nevada Copper Corp. ("Nevada Copper" or "Company"). The Equipment Financing forms part of the overall project capital funding package for Nevada Copper's Stage 1 Underground Operation, currently under construction.
A major component of this project capital funding package, a US$200 million Red Kite loan facility, was previously announced on March 28, 2013. Of the Red Kite facility, US$36 million has been drawn down and a further US$15 million will be advanced by October 9, 2013 as a result of receiving all project permits. Upon receipt of the US$15 million from Red Kite, Nevada Copper's cash position will be approximately US$60 million, with further US$173 million of funding available (US$149 million from the Red Kite loan facility and the US$24 million Equipment Financing from Cat Financial). The Equipment Financing is subject to certain conditions precedent typical for such financings. Further elements of project capital funding will be announced as they are finalized.
Engineering and procurement for the 6,500 ton-per-day Stage 1 operation is advancing normally. All required development permits were received on September 5, 2013. The development will initially access ore from the East deposit via a 2,200 foot, 24 foot diameter concrete lined production shaft. Shaft sinking resumed in June 2013 after construction of the hoist, headframe, shaft collar and required infrastructure were completed in May. Initial production from the Stage 1 operation is targeted for 2015.
Feasibility Study results for a Stage 2 Open Pit Operation will be released on or before October 4, 2013. Production for the Stage 2 Open Pit Operation is targeted for 2016, subject to the successful passage of the Lyon County Economic Development Land Bill (the "Land Bill"). It is anticipated that the Land Bill will be passed by Congress in 2013.
Giulio Bonifacio, President and CEO, stated: "As previously discussed we expected a significant portion of the remaining project capital funding after considering sunk costs, treasury and the Red Kite facility to be financed by way of an equipment lease and precious metal stream. With the Cat Financial equipment financing in hand we will now move forward with a precious metal stream in the short term. We are now fast approaching our most significant corporate and project milestone - a fully permitted and funded project."