There’s nothing like starting a fresh new year with a guy with a pretty face, so last night’s NR from Nevada Copper (NCU.to) has provided plenty of entertainment at IKN Nerve Centre. And we particularly like the long ones, because we get to play Hunt-The-News, always semi-hidden among the distractions and bunkum.
Two things get picked out for extra light-shining-upon-ness (yes it’s a word, of course it’s a word). First this bit:
“The Loan Agreement amendment also required that, prior to December 31,
2015 the Company would complete an equity and/or subordinated debt
financing transaction for proceeds of US$20 million”.
Compare that to the September 30th release which announced the loan amendment but strangely, bizarrely, weirdly, made no mention at all about the obligation to raise capital by 2015 year-end, only that (and I quote), “Nevada Copper believes that it is the appropriate time to re-engage on the financing front“. Yup, appropriate as in “we have to else default” but y’know…details.
However, that’s just IKN’s penchant for catching a guy with a pretty face in another round of bovine excrement dispersal. The real core of last night’s NR is here:
“If the Company does not complete the 2016 Financing by April 15, 2016,
all amounts outstanding under the Loan Agreement will be immediately due
and payable by the Company and Red Kite will be in a position to
exercise all remedies available to it under the Loan Agreement and
related security agreements.”
Translation: NCU has 3.5 months to raise twenty large in a bear market after having failed to do just that in the last quarter, despite talking to a whole bunch of different people who were just queueing up to lend them money, else Red Kite takes over. Well…can’t see any share price pressure there….can you?