- Cyprium Metals (CYM) taps investors for $35 million to support the restart of its Nifty project in the northeastern Pilbara region of Western Australia
- Private investors supported the company’s two-tranche placement comprising more than 318.6 million shares at 11 cents per share
- The completion of the capital raise is conditional on the finalisation of senior debt financing, making up part of a total funding package that will enable construction to begin
- Cyprium is aiming to achieve production of the copper metal plate on site in the first half of 2024
- CYM shares resumed trade today and dropped 14.8 per cent to trade at 11.5 cents at 2:19 pm AEDT
Cyprium Metals (CYM) has tapped investors for $35 million to support the restart of its Nifty copper project in the northeastern Pilbara region of Western Australia.
New and existing sophisticated and institutional investors supported the company’s two-tranche placement comprising more than 318.6 million shares at 11 cents per share.
The issue price of the placement shares represents an 18.5 per cent discount to the company’s last closing share price of 13.5 cents on January 31.
Subject to shareholder approval, the raise will include a one-for-one attaching option for all participants, exercisable at 15 cents each and expiring in two years.
The completion of the capital raise is conditional on the finalisation of senior debt financing, making up part of a total funding package that will enable construction to begin at the Nifty project.
Cyprium is aiming to achieve the production of copper metal plate on site in the first half of 2024.
While the bulk of the raise is set towards the company’s funding strategy to finance the restart, $15 million will fund exploration activities, resource drilling, the costs of the capital raise, financing costs and for general working capital purposes.
CYM Managing Director Barry Cahill said the restart project economics remained “very robust” and were further enhanced based on current copper prices of $13,000 per tonne, which is above those applied in the Nifty copper project restart study.
Tranche one of the placement is anticipated to settle on February 28 upon the receipt of binding commitments in relation to a Senior Secured Bond Issue.
Shareholder approval is required to issue 136 million shares under tranche two, including to Cyprium Directors, which will be sought at a general meeting within 45 days.
CYM shares resumed trade today and dropped 14.8 per cent to trade at 11.5 cents at 2:19 pm AEDT.