Pumpkin Hollow mine owner Nevada Copper has confirmed its filing of a voluntary petition for Chapter 11 bankruptcy protection.
The miner filed in the Bankruptcy Court of the District of Nevada.
The company had already hinted at its plan in recent filings, noting it was in discussions with its key stakeholders and other parties to obtain funding and/or enter into a change of control transaction.
Those talks failed, leaving Nevada Copper unable to secure additional interim funding from its key stakeholders.
“As a result, the company is unable to continue carrying on business,” it said.
In tandem with its Chapter 11, Nevada Copper has requested customary relief to support its employees and critical vendors during the bankruptcy process and has asked the court permission to continue to pay employee salaries and wages, and to continue other benefit programs regardless of whether amounts were owing prior to the commencement of the Chapter 11 case.
The miner said that, as it enters the restructuring process, it does not expect to continue operations, but does plan to conduct business as a “debtor in possession” under Bankruptcy Court jurisdiction.
Nevada Copper’s Pumpkin Hollow copper project has substantial reserves and resources including copper, gold and silver. Its two fully permitted projects include the high-grade underground mine and processing facility and a large-scale open-pit PFS-stage project.
Source: Nevada Copper