Cyprium Metals Limited (ASX: CYM) has received firm commitments for A$35M through a two-tranche placement to sophisticated and institutional investors to help support the re-start of the Nifty Copper Mine in Western Australia.
The Placement was strongly supported by numerous sophisticated and professional investors, including numerous new and existing high quality domestic and offshore institutions.
“We would like to thank the existing and incoming Cyprium shareholders for their support in this well supported capital raise. The commitments received for this Placement form part of the finance package for the restart of the Nifty Copper Project,” Managing Director Barry Cahill said.
“The completion of the capital raising, which is conditional with the finalization of the senior debt financing will allow Cyprium to commence our construction plans and the production of copper metal plate on site in the first half of 2024.
“The restart project economics remain very robust and are further enhanced based on current copper prices of A$13,000p/t which is above those applied in the Nifty Copper Project Restart Study.”
Canaccord Genuity (Australia) Limited, Euroz Hartleys Limited and Evolution Capital are acting as Joint Lead Managers to the Placement. Longreach Capital is acting as financial adviser to the Placement.
Use of Funds
From the Placement proceeds, A$20M will be applied as part of the company’s funding strategy to finance the restart of the Nifty Copper Project which will aim to provide a sustainable, secure, and stable supply of copper metal at 25,000tpa.
The net proceeds from the bond issue together with the Offtake Prepayment Facility comprises the targeted A$240M to A$260M debt funding package to finance the restart of the Nifty Copper Project.
The remaining funds raised from the Placement will be used to fund exploration activities, resource drilling, the costs of the capital raise, financing costs and for general working capital purposes.
For further information please visit: https://cypriummetals.com