Cyprium Metals Ltd (ASX:CYM, OTC:CYPMF) has raised $31.6 million via an oversubscribed capital raising, securing a strong endorsement from shareholders for its strategy to restart the Nifty Copper Mine in WA as a long-life large-scale open pit mine.
The capital raising comprised of a placement at an offer price of $0.04 per share, raising $24 million, and a pro-rata non‐renounceable entitlement offer raising $5 million.
The oversubscriptions in the entitlement offer shortfall enabled Cyprium to place an additional 65.5 million new shares, raising a further $2.6 million.
Strong support from investors
The placement was strongly supported by sophisticated and professional investors, including numerous new and existing high-quality domestic and offshore natural resources focused institutions, family offices and private equity investors.
Leading private equity firm and existing shareholder, Pacific Road Capital Management (PRCM), subscribed for $8.26 million in the capital raising, representing a 15.54% interest in the company post capital raising.
Each participant in the capital raising received one free attaching option for every two shares issued. The options will be exercisable at $0.06 each, on or before 31 December 2024.
New managing director
Cyprium has appointed Clive Donner as managing director of the company, effective immediately.
Donner is an experienced mining private equity and financing expert who has financed over 50 mines globally.
He founded and actively managed two private equity funds which focused on emerging and mid-tier mining companies.
Donner was previously a director of Rothschild Australia responsible for mine development financing.
He has been engaged to lead the raising of the required debt and equity capital, developing the assets of Cyprium and building the company into a mid-tier copper producer.
“Execution of our strategy to restart the Nifty Project”
Donner said: “The board is very appreciative of the strong support from current shareholders and welcomes a number of new institutional investors onto the register.
“The oversubscribed equity raising has now been completed, which together with the US$14.5 million bridging facility closed last quarter, provides the company with the capital to advance the Nifty technical studies and finalise an appropriate development funding package next year.
“This will enable the delivery and execution of our strategy to restart the Nifty Project as a larger scale open pit copper operation.”
New interim chair
Cyprium has appointed Matt Fifield as a non-executive interim chair of the company.
Fifield is the managing director of Pacific Road Capital, a leading resource investment firm that has managed over $1 billion in funds raised to develop and enhance resource companies around the world.
He has participated in over $10 billion of capital raising and M&A transactions across his career and is a leading voice on responsible resource investing.
Milan Jerkovic appointed as chief operating officer
Cyprium has appointed Milan Jerkovic as chief operating officer of the company.
Jerkovic is an experienced mining veteran who will assist in the execution of the development plan for Nifty and provide leadership input to the development team in the company.
He has previously built resource companies from early-stage, under-financed geological opportunities to fully engineered, built operations and capitalised companies.
Other changes
Barry Cahill has resigned from the board and as managing director.
Gary Comb has stepped down from the role of chair of the board following the appointment of Matt Fifield. Comb will continue as a non-executive director of the company.