MLX: Update on Cyprium Convertible Notes
Released
Released
Announcement PDF
ASX RELEASE
22 AUGUST 2024
UPDATE ON CYPRIUM CONVERTIBLE NOTES
Metals X Limited (ASX: MLX) advises that it has agreed with Cyprium Metals Limited (ASX: CYM) (Cyprium) to
amend the terms of the A$36 million in convertible notes issued to Metals X when Cyprium purchased the
Company’s copper asset portfolio in 2021 (see ASX announcement dated 10 February 2021).
Metals X has signed a binding term sheet with Cyprium to vary the material terms of the convertible notes as
follows:
• Three (3) year extension to the convertible note’s redemption date
•
$5 million amendment fee payable in two equal instalments of $2.5 million, with the first instalment
payable immediately and the second instalment in line with Cyprium’s next capital raise or before 31
December 2024, whichever is earliest
•
Annual interest rate adjusted to 6% per year, payable in cash semi-annually
•
Conversion price adjusted to a 25% premium to the share price at which Cyprium next raises equity
capital (the Conversion Price).
•
Convertible notes can be redeemed early at the Cyprium’ s option through payment of 115% of face
value. In the event of an early redemption, Metals X can at its sole option select to take repayment by
being issued Cyprium shares at the Conversion Price rather than receiving cash repayment. The
amended terms of the convertible notes have been set such that upon an early redemption, Metals X
will be able to elect to take consideration of a maximum of 200 million shares, with the balance to be
paid in cash. Cyprium will seek shareholder approval at the next meeting of shareholders for
additional conditional shares to be issued to support the amended terms of the convertible notes
•
Cyprium will issue Metals X an additional 40.6 million options, with a two year expiry and an exercise
price set at 25% premium to next capital raise, subject to Cyprium shareholder approval at the next
meeting of shareholders (if shareholder approval is not granted the note becomes immediately
payable )
•
Binding term sheet has been signed, with long form documentation in process
Metals X Executive Director Brett Smith commented: “Extending the maturity of the convertible note ensures
the face value of the original note is preserved. Along with the amendment fee and updated interest rate , the
extension also includes adjusting the conversion price and the granting of new options. We are pleased that
the amended terms aligns MLX with Cyprium’s success from here – by extending the convertible notes we
have given Cyprium flexibility necessary to redevelop the brownfield Nifty project in this strong copper
market.”
This announcement has been authorised by the Board of Metals X Limited.
ENQUIRIES
Mr Brett Smith
Executive Director
E: brett.smith@metalsx.com.au
CORPORATE DIRECTORY
Unit 202, Level 2
39 Mends Street
South Perth WA 6151 Australia
ASX Code: MLX
T +61 8 9220 5700
E reception@metalsx.com.au
ABN 25 110 150 055
www.metalsx.com.au
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