Cyprium Metals Ltd (ASX:CYM, OTC:CYPMF) has taken recent capital raising initiatives to $29 million and will undertake an additional placement to raise another $2.6 million as it moves towards restarting the Nifty Copper Project in WA.
In the most recent capital raising round, a non-renounceable entitlement offer, the company raised $5 million, including a shortfall component, which was heavily oversubscribed.
The entitlement offer closed at 5.00 pm (AWST) on Thursday, September 7, 2023, and proceeds of approximately $1.6 million were raised before the shortfall.
Eligible shareholders registered on the record date of 5pm (WST) on August 18, 2023, were eligible to apply for one share for every 5.84 shares held at $0.04 per share, together with one free attaching new option for every two shares applied for with the new options exercisable at $0.06 each on or before December 31, 2024.
READ: Cyprium Metals readies for Nifty restart with cap raise of up to A$29 million; new leadership
Applications for 40,496,934 shares were received from existing shareholders on the same terms as the placement for which the company fielded firm commitments for $24 million.
The issue of the shares and new options under the placement was approved by shareholders at a general meeting held on September 7, 2023.
This placement was strongly supported by sophisticated and professional investors, including numerous new and existing high-quality domestic and offshore natural resources-focused institutions.
Shortfall success
Cyprium is able, subject to the requirements of the ASX Listing Rules and the relevant law, to place the remaining shortfall within three months of the closing date at a price of $0.04 per share, together with 1 free attaching new option for every two shares applied for.
The company received oversubscribed interest for this shortfall to bring the total proceeds under the entitlement offer to $5.0 million.
READ: Cyprium Metals financier subscribes to $500,000 of shortfall shares
As part of the shortfall offer, the company signed a shortfall agreement with Nebari Natural Resources Credit Fund II, LP, which subscribed for $500,000 worth of shares.
Nebari Partners, LLC is a United States-based investment manager, specialising in privately offered pooled investment vehicles, including Nebari Natural Resources Credit Fund II, which is funding this transaction.
Follow-on placement
In order to accommodate the excess shortfall demand, the company proposes to undertake a placement to raise an additional $2.6 million, on the same terms, together with 1 free attaching new option for every two shares applied for.
The new options will be exercisable at $0.06 each on or before December 31, 2024.
Funds raised will primarily be used for financing servicing costs, completion of the Nifty project technical studies and approvals for integrated open pit, Nifty site costs, maintenance of tenements, corporate overheads, transaction costs and to provide additional working capital.
The issue of the new shares and new options under the entitlement offer, the placement and the follow-on placement is scheduled to occur by close of business on September 11, 2023.
Nifty restart
Cyprium’s restart plan at Nifty is to develop a large-scale open-pit mine, which will lower the development’s capital requirements and overall risk.
A starter oxide operation will complement the large-scale sulphide open pit, together supporting a 15-year-plus mine life based on a copper resource that exceeds 900,000 tonnes.
Cyprium has finalised a restart study for its starter operation and is onto the scoping stage, which will lead to a detailed open pit life of mine study for the Nifty asset.
This integrated plan is expected to support a long-life production model with the oxide operation expected to generate up to 25,000 tonnes of copper cathode.
Down the line, a sulphide concentrator is piqued to produce as much as 40,000 tonnes of copper in concentrate every year.
Beyond Nifty, Cyprium believes there’s growing interest in its Maroochydore and Murchison exploration projects.
The company continues to build out its WA copper portfolio, which together hosts more than 1.6 million tonnes of contained copper.