Nevada Copper said on Thursday that it has “significantly scaled down operations” at its Pumpkin Hollow mine after failing to secure necessary funding and fears that the business may not continue if the situation does not improve.
“We took critical steps and refocused resources to mitigate and address these issues. The hoisting and ore handling system has returned to full capacity and mill operations continue to incrementally improve with over two months of mill feed stockpiled on surface,” CEO Randy Buffington said in the February 8 press release.
Pala has since been providing sole funding for the company’s operating needs in the form of debt but is not obligated to do so, and has indicated that it may not be prepared to provide further funding, Nevada Copper said. In the absence of securing sufficient funding on an urgent basis, the company will not be able to continue carrying on its business and may have to seek creditor protection, Nevada Copper stated in Thursday’s release.