- Cyprium Metals (CYM) is assessing alternative funding arrangements for the restart of its Nifty copper project in Western Australia as its original plans fall through
- The terms proposed for a senior secured bond were deemed not commercially satisfactory for the company
- CYM’s planned $35 million equity raise was contingent on securing senior debt financing and, given today’s news, will not go ahead in the current form
- Cyprium says it will remain in voluntary suspension until it is in a position to announce an alternative financing package
- CYM shares last traded at 11 cents prior to a trading halt on February 21
Cymprium Metals (CYM) is assessing alternative funding arrangements for the restart of its Nifty copper project in Western Australia after its original plans fell through.
Earlier this month, the company announced plans for a $35 million equity raise, contingent on securing a senior debt facility.
Cyprium said it undertook fixed-income investor calls with international debt capital market investors for a proposed issue of a USD-denominated senior secured bond with a five-year tenor, subject to inter alia market conditions.
The proceeds from a potential bond issue, plus an offtake prepayment facility, comprised the targeted $240 million to $260 million debt funding package to finance the project restart.
However, the terms proposed for this facility were deemed “not commercially satisfactory” for the company.
As a result, the equity raise will not complete in the current form, and Cyprium has begun evaluating possible alternative financing arrangements.
This is expected to take several weeks, and the company has decided to keep its shares in voluntary suspension until it is in a position to announce an alternative financing package.
CYM shares last traded at 11 cents prior to a trading halt on February 21.