Nevada Copper, Inc., a Canadian mining company developing the Pumpkin Hollow copper project near Yerington, Nevada, filed for Chapter 11 protection on June 10, 2024 in the U.S. Bankruptcy Court for the District of Nevada (Case No. 24-50566) before Judge Hilary L. Barnes. The company had invested over $1 billion in the 22,862-acre project, which encompasses a fully constructed underground mine and a permitted open pit that would have been the third largest copper mine in the United States. The filing followed operational and geotechnical challenges at Pumpkin Hollow and failed funding negotiations with major shareholders Pala Investments (57%) and Mercuria Energy (17%). At filing, the company carried approximately $279.2 million in secured debt and $226.6 million in unsecured and intercompany claims, and laid off 117 of its 195 employees. The debtors obtained $60 million in DIP financing from Elliott Investment Management affiliates ($20 million interim plus $40 million delayed draw). Substantially all assets were sold to Southwest Critical Materials LLC, an affiliate of Kinterra Capital, for approximately $128 million under a stalking horse agreement, with the sale closing on October 8, 2024 and generating approximately $125 million in net proceeds. The amended plan of liquidation filed in February 2025 projects approximately 3% recovery for Term Loan Tranche A/B holders, 1.4%-2.3% for general unsecured creditors from a $250,000 pool, and 0% for equity interests.
