Nevada Copper Corp., the owner of the Pumpkin Hollow underground copper mine near Yerington, has recently filed for Chapter 11 bankruptcy and ceased operations, resulting in 117 employee layoffs. The company made this difficult decision after facing challenges in securing financing or finding a buyer.
Tracey Thom, vice president of investor relations and community relations for Nevada Copper, confirmed the shutdown and stated that the operations have been placed on care and maintenance during the restructuring proceedings. This development also affects Small Mine Development, a contract mining company working on projects at Pumpkin Hollow.
Keith Jones, SMD’s general manager, shared that they had about 75 people at Pumpkin Hollow, and the miners are now being either laid off or transferred to other projects. Nevada Copper’s Chapter 11 filings include requests to continue supporting employees and critical vendors during the bankruptcy process.
The company has also received a commitment of $60 million in debtor-in-possession financing to provide liquidity through the restructuring period. The recent resignation of Randy Buffington as president, chief executive officer, and director of Nevada Copper led to the appointment of Tom Albanese as chairman of the board.
Despite ongoing challenges such as dewatering issues, the impact of COVID-19, and financial shortages over the years, Nevada Copper remains optimistic about its future. The filing for Chapter 11 bankruptcy comes at a time when copper prices are high, offering a glimmer of hope for the company’s eventual recovery and success.
