Cyprium Metals Ltd (ASX:CYM, OTC:CYPMF) has amended the terms of unsecured convertible notes with Metals X Ltd with executive chair Matt Fifield saying this “is an important step in refinancing our balance sheet as we move towards executing our phased redevelopment of the Nifty mine”.
A binding term sheet has been signed with Metals X that extends the redemption date of the convertible notes by three years to the quarter ending December 2028 while a $5 million amendment fee is now payable in two equal instalments of $2.5 million.
Amended terms
The first instalment is payable immediately and the second instalment at the earlier of Cyprium’s next capital raise or December 31, 2024.
Other terms are:
- Annual interest rate adjusted to 6% per year, payable in cash semi-annually.
- Conversion price will be amended to a 25% premium to the share price at which Cyprium next raises equity capital.
- Convertible notes can be redeemed early at Cyprium’s option through payment of 115% of face value. In the event of an early redemption Metals X can, at its sole option, elect to take a maximum of 200 million Cyprium shares at the conversion price rather than receiving cash consideration, with the balance to be paid in cash.
- Cyprium will issue Metals X 40.6 million options, with a two-year expiry and an exercise price equal to the conversion price.
“Forward momentum”
“Cyprium continues to generate forward momentum,” said Fifield. “Our execution planning is getting sharper. We are delivering on our commitments to refinance near-term maturities.
"The commercial opportunity to redevelop the brownfield Nifty complex into the next source of Australian copper is rapidly advancing. I look forward to delivering continued progress to our shareholders.”
Cyprium shareholder approval is required for the issue of options and amendment of convertible notes and this will be sought at the next meeting of shareholders.
Metals X executive director Brett Smith said: “We are pleased that the amended terms align Metals X with Cyprium’s success from here.
“By extending the convertible notes, Cyprium now has the flexibility necessary to develop the brownfield Nifty project in this strong copper market.”
Toward Nifty restart
Cyprium's flagship property is the Nifty Copper Mine in Western Australia, which previously produced significant copper from oxide and sulphide resources.
The company is focused on redeveloping Nifty, which has the advantage of significant invested capital, data from a long operating history, large-scale resources, current operational approvals and recent investment in the property.