Cyprium clears final hurdle for restart of cathode operations at Nifty

Proactive

Written by Jonathan Jackson

Cyprium Metals Ltd (ASX:CYM, OTC:CYPMF) has cleared the final administrative hurdle for the restart of cathode operations at its Nifty Copper Complex in the Paterson region of Western Australia. The Western Australia Department of Energy and Economic Diversification has approved the company’s Notice to Proceed, building on earlier regulatory submissions made under the State Agreement governing Nifty.

The restart forms part of Cyprium’s phased redevelopment strategy for Nifty and will initially focus on recovering copper from existing above-ground leach pads.

The company expects this first phase to revitalise Nifty as a significant copper processing hub in Western Australia, support Australia’s sovereign manufacturing capability through onshore production of copper cathode, and deliver broader economic benefits including more than 70 permanent positions, over 80 construction jobs and ongoing royalty payments to the state.

Nifty finances

Today’s news comes after Cyprium executed a binding term sheet with Nebari Natural Resources Credit Fund II LP (Nebari) to refinance its existing US$27.3 million senior secured loan facility, backing the phased restart of the Nifty Copper Complex in Western Australia’s Paterson region.

Under the refinance, Cyprium will repay its current senior secured loan with Glencore Australia Holdings Pty Ltd and replace it with a new senior secured loan facility with Nebari (Nebari Facility).

Key points

• Cyprium’s US$27.3 million senior secured loan facility has been refinanced with Nebari, a specialist mining lender and previous financier to the company.

• Loan maturity has been extended by one year to December 2029.

• The company may repay and redraw principal under the facility until December 2027.

• The structure is designed to preserve liquidity while allowing Cyprium to progressively reduce debt during the construction phase.

• Cyprium executive chairman Matt Fifield said the financing would support the restart of production at Nifty.

Separately, Cyprium and Nebari are in early, non-binding discussions on potential accelerated funding for the next stage of development at Nifty, aimed at expanding open-pit mining and increasing cathode and concentrate production.

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