Nevada Copper Corp. announced that it has filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the Bankruptcy Court of the District of Nevada. The filing will kick off a restructuring process and will halt its Pumpkin Hollow Mine.

The company also announced that Randy Buffington, president and chief executive, has resigned. Mining veteran Tom Albanese and been named its lead independent director, as the new chairperson.

The move follows a previous announcement that the company had “significantly scaled down operations” at the Nevada-based copper mine after failing to secure necessary funding to keep the project running.

“As disclosed in recent news releases and securities filings, the company was in discussions with its key stakeholders and other parties to obtain funding and/or enter into a change of control transaction. However, those discussions have failed to result in obtaining such funding or other transaction, and the Company has been unable to secure additional interim funding from its key stakeholders. As a result, the company is unable to continue carrying on business,” Nevada Copper said in a news release.

“In conjunction with the Chapter 11 filings, the company requested customary relief to support its employees and critical vendors during the bankruptcy process. As part of this relief, the company is asking the Court for permission to continue to pay employee salaries and wages, and to continue other benefit programs regardless of whether amounts were owing prior to the commencement of the Chapter 11 case.”

Nevada Copper has received a commitment for US$60 million debtor-in-possession (DIP) financing to provide liquidity through the restructuring period, of which the company is asking that US$20 million would be available on an interim basis. The company is seeking approval from the U.S. Bankruptcy Court for the DIP financing.

Through the restructuring process, the Company does not expect to continue operations, but does intend to take steps to preserve and protect its assets. The Company plans to conduct its activities as a “debtor in possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court.

Nevada Copper is the owner of the Pumpkin Hollow copper project located in Nevada, U.S. with substantial reserves and resources including copper, gold and silver. Its two fully permitted projects include the high-grade Underground Mine and processing facility and a large-scale open pit PFS stage project.