Cyprium Metals Ltd (ASX:CYM, OTC:CYPMF) will raise $35 million through a two-tranche placement of 318,636,364 fully paid ordinary shares to sophisticated and institutional investors at $0.11 per share.
The placement was well supported by sophisticated and professional investors, including several new and existing high-quality domestic and offshore institutions.
Participants will receive 1 free attaching option for every 1 share to be issued under the placement with options exercisable at $0.15 each on or before a date that is two years after the date of Cyprium shareholder approval.
The issue price of $0.11 per share represents an 18.5% discount to the last closing price of $0.135 on January 31, 2023.
"Well supported"
“We would like to thank the existing and incoming Cyprium shareholders for their support in this well-supported capital raise," CYM managing director Barry Cahill said.
"The commitments received for this placement form part of the finance package for the restart of the Nifty Copper Project.
“Completion of the capital raising, which is conditional with the finalisation 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$13,000 per tonne which is above those applied in the Nifty Copper Project Restart Study.”
Use of funds
Cyprium will use $20 million of funds raised to finance the restart of the Nifty Copper Project which will aim to provide a sustainable, secure and stable supply of copper metal at 25,000 tonnes per annum.
The net proceeds from the bond issue together with the offtake prepayment facility comprises the targeted A$240 million to A$260 million debt funding package to finance the restart of the Nifty Copper Project.
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.