Cyprium Metals Ltd (ASX:CYM, OTC:CYPMF) has taken a step towards restarting the Nifty Copper Project by securing a A$21 million equivalent USD-denominated secured loan facility with the resources arm of prominent US investment manager Nebari Partners, LLC.
The 18-month facility is with Nebari Natural Resources Credit Fund II, LP, and refinances the company’s existing short-term Secured Loan Deed facility with Avior Asset Management No. 2 Pty Ltd.
It will also provide working capital to advance the restart of Nifty, which is in the Pilbara region of Western Australia.
“Highly respected financier”
Cyprium executive Clive Donner said: “We are very pleased to have secured financing with Nebari, a highly respected and experienced financier of mining projects globally.
"We look forward to working with Nebari in relation to this facility and also potential future facilities associated with the development of the large open pit project at Nifty.”
Cyprium and Nebari have executed formal loan documentation for a Senior Secured Loan Facility to provide up to US$14.5 million in two tranches, with US$7.5 million drawn at closing and US$7 million available to be drawn subject to a limited number of conditions precedent.
Facility terms
The material terms of the loan facility are:
- Funded amount - up to US$14.5 million, net of original issue discounts (OID);
- Facility term - until December 31, 2024;
- Coupon - Secured Overnight Financing Rate (SOFR) +6.5% pa payable monthly;
- OID - 5.0% on Tranche 1 and 10.0% on Tranche 2;
- Amortisation - 100% bullet on maturity;
- Warrants - 2-year, 1 for 5.5 warrants which will be priced at either a 20% premium to the share price of a future equity raise or, if no equity raise is completed by 31 December 2023, the warrant strike price shall be priced at A$0.088 per share; and
- Security - over the assets of Cyprium and its projects.
The parties anticipate that this facility will be rolled into a larger, longer-term development financing facility in the near term, likely within 12 months.
This is pending the finalisation of the Nifty life-of-mine study on the integrated copper oxide Heap Leach SX-EW starter operation and the larger scale sulphide open pit.
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These studies are underway and are anticipated to be completed by the first quarter of 2024.
Nebari managing director Andre Krol said: "We are excited to partner with Cyprium during its further definition of the Nifty project and look forward to participating in the future project financing process.”
About Nebari
Nebari Partners, LLC (Nebari) is a US-based investment manager, specialising in privately offered pooled investment vehicles, including Nebari Natural Resources Credit Fund II.
The growing Nebari team has deep experience with leading global mining companies and financial institutions.
Nebari is known for partnering with motivated and capable management teams, focused on achieving clear goals, supported by technically strong assets.