Pala Investments Participates in Nevada Copper Public Offering

/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED STATES/

TORONTO, July 14, 2020 /CNW/ - Pala Investments Limited ("Pala"), a multi-strategy investment company focused on the mining and metal value chain, has agreed to subscribe for 289,202,677 units (the "Units") of Nevada Copper Corp. (the "Company") pursuant to the terms of an offering by the Company by way of prospectus on a bought deal basis (the "Offering") of the Units, which Units represent approximately C$43.4 million of gross proceeds, as further described below. Each Unit represents one common share of the Company (the "Common Shares") and one-half of one Common Share purchase warrants (the "Warrants") of the Company. Each whole Warrant will entitle Pala to purchase one Common Share at a price of C$0.20 per Common Share, for a period of 18 months following the closing of the Offering. The Company has granted the underwriters of the Offering an over-allotment option to purchase up to 23,790,000 additional Units (the "Over-Allotment Option").

In connection with the Offering, the Company intends to use part of the proceeds of the Offering to prepay in full all amounts owing under the US$30,000,0000 convertible loan facility dated March 27, 2020 (the "Convertible Loan") between the Company, as borrower, Pala, as lead arranger, and the lenders party thereto from time to time (the "Prepayment"). In connection with the Prepayment, Pala has agreed to waive the applicable prepayment premiums under the Convertible Loan related to the portion of the Prepayment to be prepaid to Pala and Pala will subscribe for 180,262,677 Units (the "Prepayment Subscription"). In addition to the Prepayment Subscription, Pala has also committed to subscribe for 108,940,000 Units in the Offering (the "Additional Subscription", and together with the Prepayment and Prepayment Subscription, the "Transaction").

Pala's Common Share Ownership

Immediately prior to the Transaction, Pala held (i) an aggregate of 332,179,447 Common Shares, representing approximately 40.52% of the issued and outstanding Common Shares on a non-diluted basis, and (ii) an aggregate of 617,992,447 Common Shares, representing 55.9% on a partially diluted basis assuming the exercise in full of the Convertible Loan held by Pala as previously announced in Pala's press release of July 7, 2020.

As a result of the Transaction, Pala will acquire up to an aggregate of (i) 289,202,677 Common Shares, and (ii) 144,601,338.5 Warrants (the "Pala Warrants") that are exercisable into 144,601,338 Common Shares. As a result thereof, immediately following the Transaction, Pala will hold (i) assuming the full exercise of the Over-Allotment Option and prior to the exercise in full of all the Pala Warrants, an aggregate of 621,382,124 Common Shares, representing approximately 41.78% of the issued and outstanding Common Shares on a non-diluted basis, and (ii) assuming the full exercise of the Over-Allotment Option and the exercise in full of all the Pala Warrants, an aggregate of 765,983,462 Common Shares, representing 46.94% of the issued and outstanding Common Shares on a partially diluted-basis which is a decrease of 8.96% in Pala's securityholding percentage in respect to Common Shares on a partially diluted basis. Additionally, as a result of the Transaction, the Convertible Loan will be terminated in full.

As previously announced, Pala had entered into a backstop agreement on March 27, 2020 (the "Backstop") among the Company, Pala and Triple Flag Mining Finance Bermuda Ltd., pursuant to which Pala was obligated to purchase additional Common Shares in accordance with the terms thereof. Upon completion of the Offering, which is expected to occur on or about July 27, 2020, Pala's commitment under the Backstop will expire in accordance with its terms.

Pala is participating in the Offering for investment purposes and may increase or decrease the investment in the securities of the Company depending on its evaluation of the business, prospects and financial condition of the Company, the market for the Company's securities, general economic and tax conditions and other factors.

The Common Shares are listed on the TSX under the symbol "NCU". Nevada Copper Corp. is a corporation organized under the laws of British Columbia with its head office at Suite 598 ? 999 Canada Place, Vancouver, British Columbia, Canada V6C 3E1. Pala is a company existing under the laws of Jersey and its address is 12 Castle Street, St. Helier, Jersey JE2 3RT.

About Pala

Pala is an investment company focused exclusively on the mining sector with a strong track record of successful investments and value creation. Pala's team has extensive experience within the sector and seeks to assist companies in which it has long-term shareholdings by providing strategic advice and innovative solutions in development, production, turnaround and advanced exploration situations. Pala invests across all geographies and in all mining commodities as well as mining services and consumables. For more information, visit www.pala.com.

SOURCE Pala Investments Limited