The US Bankruptcy Court gave an order to Nevada Copper, Inc. to obtain DIP financing on an interim basis on June 14, 2024. As per the order, the debtor has been authorized to obtain a term loan facility in the amount of $20 million out of total facility of $60 million from Manchester Securities Corp ($6.4 million on an interim basis out of total financing of$19.2 million) and Ziwa Investments Limited($13.6 million on an interim basis out of total financing of $40.8 million) with U.S. Bank Trust Company, National Association acting as the administrative agent. The DIP loan would carry an interest rate of SOFR plus 9% p.a. and the Credit Spread Adjustment of 10 bps.

As per the terms of the DIP agreement, the loan carries a commitment fee of 1% p.a., upfront fee of 5.0% and exit fee of 1.0%. The DIP facility would mature either on October 8, 2024 (July 25, 2024, if final order is not entered) or on the effective date of the plan or on the date of consummation of the sale of substantially all assets, whichever is earlier. Adequate protection would be provided to the DIP lenders in the form of super-priority administrative expense claims which is subject to a carve-out of $0.05 million towards unpaid trustee fees and $0.75 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor?s collateral.

The final hearing is scheduled on July 12, 2024.