Nevada Copper shareholders face loss of investment as Elliott Investment circles to provide emergency bankruptcy funding

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The struggling Canadian miner, which has struggled for years to ramp up production at its Pumpkin Hollow copper mine, is seeking bankruptcy protection

Vancouver-based Nevada Copper Corp. has struggled for years to ramp up production at its Pumpkin Hollow copper mine in Nevada.shareholders are poised to lose their entire investment, with the struggling Canadian miner seeking bankruptcy protection, and hoping to secure emergency financing from U.S. hedge fund Elliott Investment Management.

On Monday, the company’s U.S. subsidiary filed for Chapter 11 bankruptcy protection in a Nevada court. Randy Buffington also resigned as chief executive officer at that time, while former Rio Tinto PLC CEO Tom Albanese took over as chairman. Mr. Albanese was already the lead independent director and an investor in Nevada Copper before his appointment. According to Refinitiv, he is the company’s fifth-biggest shareholder., Nevada Copper’s stock traded on the Toronto Stock Exchange.

Jersey-based Pala Investments Ltd. is Nevada Copper’s biggest shareholder, holding 61 per cent of the company’s shares. Pala provided some additional funding to Nevada Copper earlier in the year, but it wasn’t enough to keep the company going. Mercuria Energy Holdings Singapore PTE Ltd. is Nevada Copper’s second-biggest shareholder. Rothschild & Co. Asset Management is the third-biggest shareholder.-T In 2022, it provided $30-million to Nevada Copper.

 

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