Cyprium completes first tranche of A$74M placement

Proactive

Written by Jonathan Jackson

Cyprium Metals Ltd (ASX:CYM, OTC:CYPMF) has completed Tranche 1 of its two-part placement to raise approximately A$74 million before costs.

The company has issued 515,931,656 new fully paid ordinary shares at A$0.028 per share under Tranche 1. Tranche 2, which covers 2,126,925,510 shares including those to be issued to directors, remains subject to shareholder approval at a meeting scheduled for October.

The placement, priced at A$0.028 per share, represents a 6% discount to the 10-day volume-weighted average price (VWAP). The raise comprises A$74 million from the placement, and there is a further A$6 million to be banked from an entitlement offer.

The capital raising attracted strong participation from new and existing stakeholders. Major shareholder Flat Footed maintained its pro-rata 19.9% stake. Tribeca Investment Partners acquired a 9.9% interest and agreed to sub-underwrite the entitlement offer, while Tanito Group also secured a 9.9% holding.

Directors committed A$1 million collectively, subject to shareholder approval. More than 20 domestic and international institutions also participated, reflecting broad confidence in Cyprium’s development strategy.

A 1-for-10 share consolidation is planned, pending shareholder approval.

Cyprium to restart Nifty Cathode Project

Funds raised through the placement will be directed towards advancing the phase one Cathode Project, strengthening the balance sheet, completing the feasibility study for the Concentrate Project, and maintaining Cyprium’s assets in the Paterson Province.

The company will also reduce debt and progress the feasibility study for the Concentrate Project.

“This is a transformational capital raise that creates a pivotal inflection point for the company,” executive chairman Matt Fifield said. “Over the last two years, we have developed sound and executable plans to restart the Nifty Copper Complex, a prolific past producer of Australian copper. We have onboarded important partners Glencore and Macmahon to build partnerships that deliver skills and competencies that we need as we transition from asset owner to producer. Now, with this capital raise, we have the financial capacity to deliver our first phase of production, the refurbishment and resumption of copper cathode production at Nifty."

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