Cyprium Metals Ltd (ASX:CYM, OTC:CYPMF) intends to cap off what it describes as a “transformational 2024” by raising up to $3 million in a non-renounceable pro rata offer to eligible shareholders following a strongly supported two-tranche placement that raised around $13.5 million.
The offer is on the basis of one new fully paid ordinary share in the company for every 16 existing shares held as at 7:00pm on December 30, 2024, at $0.028 per share, together with one unquoted new option for every two new shares subscribed for.
It is on the same terms as the two-tranche placement announced by the company on December 13, 2024, and will strengthen finances as Cyprium remains on-track with its plan to restart the Nifty Copper Mine in WA.
Necessary runway
“Cyprium has had a transformational 2024, hitting important technical and financial milestones,” said the company’s executive chair Matt Fifield.
“The recently announced placement along with the previously announced sale of surplus equipment will add a combined $23 million in gross proceeds when finalised, securing the necessary runway for the company to advance its plans and comply with certain conditions in our loan facility.
"This entitlement offer is an opportunity for all shareholders to invest in the bright future of Cyprium on the same terms as insider and institutional subscribers have already committed to invest under the placement.”
Up to 106,979,789 new shares and 53,489,895 new options may be issued under the entitlement offer to raise up to $2,995,434.09 before costs. No funds will be raised from the issue of the new options.
FIRB has no objection
Meantime, the company has ticked off another condition in the capital raise of around A$13.5 million with the Foreign Investment Review Board (FIRB) providing a no-objection notice to cornerstone investor Flat Footed L.L.C. (FF).
This notice, advised by the FIRB on December 19, 2024, regards FF’s participation in Tranche 2 of the placement. It was a previous condition to this involvement and renewal of a previously obtained FIRB approval.
READ: Cyprium Metals to target funds of around A$13.5 million in two-tranche placement for Nifty Copper Complex
The remaining condition to complete Tranche 2 is shareholder approval, which will be sought at an extraordinary general meeting (EGM) expected to be held in late January 2025.
Tranche 2, designed to raise an additional A$8.3 million, will involve the issue of 297,488,855 fully paid shares and 148,744,427 unlisted options exercisable at A$0.042 each, with an expiry date of December 31, 2027.
Strong placement support
Cyprium received strong commitments for the two-tranche placement of 483.2 million new fully paid ordinary shares in the company at an issue price of A$0.028, including from cornerstone investors, existing institutional shareholders and company directors.
FF agreed to cornerstone the placement in the amount of A$5.3 million, in exchange for 20 million additional unlisted options, subject to shareholder approval and FIRB approval.
Directors of the company, or their nominees, also committed to subscribe for placement shares in the aggregate amount of A$3 million and this is also subject to approval by shareholders at the EGM.
At the completion of the placement, FF stands to hold around 19% of the company’s fully paid ordinary shares.
READ: Cyprium Metals wraps up first tranche of broader $13.5 million placement, raising $5.2 million
Tranche 1 of the placement was completed last week with Cyprium raising A$5.2 million before costs.
Cyprium issued 185,714,285 fully paid ordinary shares at A$0.028 per share, along with 92,857,143 free-attaching unlisted options.
Canaccord Genuity (TSX:CF, LSE:CF) acted as the lead manager to the placement.
Use of funds
Cyprium plans to channel proceeds from the placement into a range of operational and financial purposes, including:
- covering costs associated with the Nifty project site;
- advancing permitting support and definitive feasibility study (DFS) preparations;
- maintaining tenements and conducting geological work; and
- addressing financing obligations tied to its MLX convertible notes and Glencore (LON:GLEN) facility.
Additionally, funds will be allocated to working capital and covering the costs associated with the entitlement offer.