Cyprium Metals raises $41 million to fast-track Nifty growth and regional exploration

Proactive

Written by Lisa Uhlman

Cyprium Metals Ltd (ASX:CYM, OTCQB:CYPMF) has locked in a $41 million equity raising to accelerate regional exploration and advance its next phase of production growth at the Nifty Copper Complex, as the company works towards first cathode production in mid-2026.

The capital raising comprises a $36 million institutional placement and a $5 million fully underwritten, non-renounceable entitlement offer, both priced at $0.52 per share. The offer attracted oversubscribed demand from existing and new investors, including cornerstone support from major shareholders Flat Footed and Tribeca.

Cyprium said proceeds will be directed towards accelerating exploration across its broader Paterson and Murchison portfolios, while also funding studies and early works aimed at expanding production capacity at Nifty.

Placement backed by cornerstone investors

Under the placement, Cyprium will issue about 69.2 million new fully paid shares to professional and sophisticated investors, raising $36 million before costs.

The placement is split between a $35.6 million tranche issued under existing placement capacity and a $400,000 tranche to directors, subject to shareholder approval at an extraordinary general meeting expected in early March.

The issue price represents an 11.1% discount to Cyprium’s last traded price and a nearly 8% discount to recent volume-weighted average prices. Canaccord Genuity and Euroz Hartleys acted as joint lead managers.

Entitlement offer opens in February

Alongside the placement, Cyprium will undertake a fully underwritten 1-for-58 entitlement offer to raise a further $5 million.

Eligible shareholders will be able to subscribe for new shares at the same $0.52 issue price, with the offer opening on February 6 and closing on February 27. A top-up facility will also be available, allowing shareholders to apply for additional shares above their entitlement, subject to scale-back.

The entitlement offer is open to eligible shareholders in Australia, New Zealand and select overseas jurisdictions.

Indicative Timetable – Placement & Entitlement Offer

Funding growth at Nifty and beyond

Cyprium said the raising strengthens its balance sheet as it advances the phased restart of the Nifty Copper Complex, including its planned return to cathode production in mid-2026.

Funds will be used to accelerate studies and early works linked to future production growth initiatives at Nifty, including potential reactivation of the open pit, expansion of heap leach and solvent extraction-electrowinning (SXEW) capacity, and refurbishment studies for the concentrator.

The company also plans to fast-track exploration across regional prospects, including the Paterson Exploration Project, Maroochydore and the Cue Copper-Gold Project. Cyprium recently regained full control of exploration ground adjacent to Nifty, where it has identified multiple advanced copper targets supported by extensive legacy datasets.

Executive chairman Matt Fifield said the raising allows the company to progress multiple workstreams in parallel as it builds towards a broader production profile.

“As we progress towards first cathode production at Nifty, Cyprium is increasing its focus on growing our business rapidly,” Fifield said. “This equity capital raising allows us to accelerate workstreams progressing the next phase of the Nifty Copper Complex, which involves expansion of SXEW capacity, designing and building a surface mine to access the shallow open-pit oxide ores and the sulphide ores beneath it.”

Balance sheet strengthened post-raise

Following completion of the raising, Cyprium’s cash balance is expected to increase to about $116 million from $75 million, with the company moving to a net cash position of around $39 million.

Shares on issue are expected to rise to around 571 million, giving Cyprium a pro forma market capitalisation of roughly $297 million.

Pro-forma Capital Structure

Read the article on Proactive here