Gunnison Copper reduces Nebari debt to nil

Executive Summary

• Gunnison Copper Corp. has fully eliminated all outstanding principal owed to Nebari Natural Resources Credit Fund I LP, reducing the debt from $15 million (U.S.) to zero.
• The elimination of this legacy secured debt was achieved through a combination of cash repayment and equity conversions, significantly strengthening the company's balance sheet and removing secured liens.
• The final tranche of debt conversion resulted in the issuance of 22,651,407 common shares, bringing the total capital structure to an equity-based model ahead of the construction of the flagship Gunnison project.

Key Details

• Debt Elimination: Total principal amount of Nebari debt reduced from $15 million (U.S.) to $0.
• Final Conversion Details:
  • Amount Converted: $4.75 million (U.S.).
  • Conversion Price: 20.97 U.S. cents per share (reduced from the original 30 cents).
  • Shares Issued: 22,651,407 common shares.
• Previous Repayments: The company previously announced a $7.3 million (U.S.) repayment of Nebari's non-convertible debt.
• Remaining Obligations: Gunnison is repaying the partial month of interest owing and is working with Nebari to obtain a release of the security documents associated with the debt.
• Strategic Context: The move aligns with the company's strategy to maintain an equity-based capital structure until the construction of the flagship Gunnison project.
• Project Background (Gunnison):
  • Location: Southern Arizona copper belt (Cochise mining district).
  • Resource: Measured and indicated mineral resource of over 831.6 million tons at 0.31% copper grade.
  • PEA Economics: Net present value (8%) of $1.3 billion, internal rate of return of 20.9%, and payback period of 4.1 years.
  • Method: Open-pit mining, heap leach, and SX/EW refinery.
• Other Assets: Johnson Camp asset is in production, fully financed by Nuton LLC (Rio Tinto venture), with capacity up to 25 million pounds of copper cathode annually.

Notable Quotes

• Craig Hallworth, Senior Vice-President and CFO: "The repayment of the Nebari debt is a major milestone for Gunnison... This significantly strengthens our balance sheet and positions Gunnison with enhanced financial flexibility as we continue to execute on major milestones in the advancement of our large-scale flagship Gunnison project."
• Andre Krol, Nebari: "Nebari's debt conversions are testament to the company's strengthening progress under highly capable management. We are proud to have been part of that journey."