Cyprium Metals Ltd (ASX:CYM, OTC:CYPMF) has completed Tranche 1 of a two-tranche placement, raising A$5.2 million before costs as part of its larger A$13.5 million capital raising initiative.
Under Tranche 1, Cyprium issued 185,714,285 fully paid ordinary shares at A$0.028 per share, along with 92,857,143 free-attaching unlisted options exercisable at A$0.042 each, with an expiry date of December 31, 2027.
Strategic allocation of funds
The funds raised through the placement will be allocated to advance Cyprium’s key initiatives.
A portion will be directed toward the Nifty Copper Project site costs, along with supporting permit activities and the preparation of the definitive feasibility study (DFS).
The funding will also underpin tenement maintenance and geological exploration, while covering financing costs associated with the MLX convertible notes and the Glencore (LON:GLEN) facility.
Additionally, working capital requirements and placement expenses will be addressed, ensuring financial flexibility to drive growth.
Tranche 2 pending shareholder approval
Tranche 2 of the placement, 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.
The issuance is subject to shareholder approval, to be sought at an extraordinary general meeting in January 2025.
The company will also seek approval for the issuance of 20,000,000 options to the placement’s cornerstone investor.
The company plans to offer retail investors the opportunity to participate in the capital raising through an entitlement offer on the same terms as the placement.
Canaccord Genuity (TSX:CF, LSE:CF) acted as the lead manager for the placement.