The company said this week it had reviewed a third-party term sheet for a US$20-30 million credit facility.

It is said to be in discussions with senior lender KfW-IPEX Bank and other potential funding providers, while main shareholder Pala Investments is meeting regular cash calls - but only until the end of the year, by which time Nevada Copper hopes to have raised more finance.

"There can be no assurance that a financing will be completed, and in the absence of sufficient financing, the company may not be able to continue operations," it said.

Nevada Copper reported a working capital deficiency of US$101.3 million at the end of June this year, compared with a $73.6 million negative position at the end of December, 2019.

The company said it had available cash and equivalents of US$1.62 million at the end of June, versus $25.47 million at the same time a year earlier.

A C$100 million ($98 million net) equity raise at 15c completed post-June 30 was underwritten by Scotiabank, RBC, National Bank and Haywood Securities.

Nevada Copper's share price dipped 12.5% Tuesday to C7c, capitalising the company at $104 million (US$79 million). The shares were at 38c in mid-January this year.

The company says it is gaining confidence in its revised underground mine plan given a further geotechnical review and ongoing definition drilling last month, which appears to support its use of shortened stopes in the initial mining area.

While the smaller stopes in the Upper East South zone do not result in a change to the life-of-mine resource, it costs more to mine in the short term, prompting management to conclude the company will require more funding over the next four months.

Newly appointed CEO Mike Ciricillo said the Main Shaft steelwork was now completed and that work was progressing on the materials handling system. The company continues to hoist development ore via the East North Vent shaft as it ramps up to 5,000 tonnes-per-day capacity.

He confirmed lateral development rates were on schedule and development ore grades were moving to target levels. "Mill ramp up continues positively with extended periods of operation approaching nameplate throughput and recovery," he said.