Cyprium Metals secures A$80M to fund Cathode Project restart

Proactive

Written by Jonathan Jackson

An A$80 million oversubscribed placement and a fully underwritten entitlement offer will help Cyprium Metals Ltd (ASX:CYM, OTC:CYPMF) restart its Cathode Project at the Nifty Copper Complex, reduce debt, and advance the feasibility study for the Concentrate Project.

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 A$6 million from the entitlement offer.

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

All directors committed A$1 million collectively, pending shareholder approval. In addition, more than 20 new domestic and international institutions participated, demonstrating broad market confidence in Cyprium’s development strategy.

A 1-for-10 share consolidation is also planned, subject to shareholder approval.

“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."

Placement structure and pricing

The company has secured firm commitments to raise approximately A$74 million (before costs) through the issue of about 2,643 million new fully paid ordinary shares in Cyprium to professional and sophisticated investors.

Placement structure

Tranche 1 Placement: Raising approximately A$14.4 million via the issue of around 516 million new shares under the company’s existing placement capacity, comprising 309,558,994 shares under Listing Rule 7.1 and 206,372,662 shares under Listing Rule 7.1A.

Tranche 2 Placement: Raising approximately A$59.6 million via the issue of around 2,127 million new shares, including to certain directors. This tranche is subject to shareholder approval at an Extraordinary General Meeting scheduled for on or around October 6, 2025.

Placement pricing

The Placement shares are priced at A$0.028 each, representing:

• a 6.7% discount to the last traded price of A$0.0300 on August 25, 2025;

• a 6.9% discount to the five-day volume-weighted average price (VWAP) of A$0.0301; and

• a 6.4% discount to the 10-day VWAP of A$0.0299.

Fully underwritten entitlement offer

Cyprium will also conduct a 1-for-9.6 non-renounceable entitlement offer to raise A$6 million. Eligible shareholders can subscribe for 10 new shares for every 96 held as at the record date of September 2, 2025.

A top-up facility will allow applications for additional shares, although allocations may be scaled back. The entitlement offer is fully underwritten by Wilsons, Canaccord and Euroz Hartleys.

Use of funds and financial impact

The money will be directed towards restarting the solvent extraction and electrowinning (SXEW) plant at Nifty (A$21 million), supporting infrastructure (A$9 million), and other restart activities (A$10 million). The balance of A$40 million will cover operations, project development, debt repayment and offer costs.

Post-raise, Cyprium’s cash balance is expected to rise from A$16.2 million to A$96.2 million, shifting its net debt position from A$62.1 million to net cash of A$17.9 million.

“With this capital we will be able to materially strengthen the company’s financial profile through cash flow delivered from operations and through direct paydown of existing debt,” Fifield said.

“We will also be quickly advancing the next phase of operations at the Nifty Copper Complex by completing the relevant studies around resumption of mining from the open pit and restart of the sulphide concentrator. Finally, we will look for creative ways to continue to unlock shareholder value from our great portfolio of copper assets in the Paterson.

“We are thankful for the strong support from existing shareholders and welcome our new shareholders into the company. Our focus is quickly shifting to execution as we build Australia’s next great copper company.”

Share consolidation and timeline

To create a more effective capital structure, Cyprium plans a 1-for-10 share consolidation following completion of the raise, reducing the enlarged 4.92 billion shares on issue.

The indicative timetable includes the entitlement offer opening on September 4, and closing on September 24, with settlement and quotation of new shares occurring in early October. An extraordinary general meeting on October 6 will consider approval of Tranche 2 placement shares and the consolidation resolution.

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