Paulson & Co. Discloses 18.3 Percent Stake In NovaCopper

 |  About: NovaCopper (NCQ)
by: ValueWalk

By Marie Cabural

The shares of NovaCopper rose more than 6% on Monday, August 11

Paulson & Co., an investment management firm established and managed by John Paulson, disclosed an 18.8% stake in NovaCopper Inc. (NYSEMKT:NCQ), based on its 13G filing with the Securities and Exchange Commission (SEC).

The regulatory filing showed that Paulson & Co. owned 11,511,649 shares of NovaCopper, including 2,760,870 shares of common stock underlying currently exercisable warrants.

NovaCopper is a base metals exploration company. It is focused on exploring and developing mineral properties, including the Arctic and Bornite Projects in Northwest Alaska.

NovaCopper financial results

During the second quarter, NovaCopper Inc. reported a net loss of $2.1 million, or $0.04 per share. During the year-ago quarter, the company recorded a net loss of $5.9 million, or $0.11 per share.

NovaCopper said its mineral property expenses were $488 thousand, down from $2.2 million in the same period a year ago. According to the company, a significant reduction was due to the timing of the start of its field program. The company ended its second quarter with $2.1 million in cash and cash equivalents.

NovaCopper completed private placement offering

NovaCopper recently announced the completion of a $7.5 million private placement financing, which is restricted for general and administrative expenses and program expenditures over the next twelve months.

Its shareholders, including Electrum Strategic Resources LP and Paulson & Co., acquired its entire private placement offering for $1.15 per unit (composed of one common share and one common share purchase warrant).

NovaCopper said each common share purchase warrant entitles the shareholder to buy one common stock of the company for $1.60 per share for five years from the closing date of the agreement.

NovaCopper's future strategy

In a statement, Rick Van Nieuwenhuyse, president and CEO of NovaCopper, said, "Our strategy in the upcoming months is to build upon the success of last year's program.

He added, "An effective program of re-logging and re-assaying at Bornite coupled with our focused effort of working closely with AIDEA on initiating the permitting process for the AMDIAR should allow NovaCopper to continue building shareholder value at a relatively low cost."

The shares of NovaCopper Inc. closed $1.11 per share, up by more than 6% on Monday, August 11, 2014.

Disclosure: None

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