Cyprium Metals (ASX: CYM) announces cap raise of AU$29M to aid Nifty restart

Highlights

• Cyprium has received firm commitments for a conditional placement designed to raise AU$24 million.
• The company seeks to raise up to AU$ 5 million via an entitlement offer.
• The proceeds would be deployed to meet Nifty site costs, technical studies, and working capital purposes.
• Upon the issuance of shares via the placement, Clive Donner will be appointed as the managing director.  

Australian mineral explorer Cyprium Metals Limited (ASX: CYM) has announced a capital raise through an entitlement offer and a placement to raise up to AU$29 million before costs.

Firm commitments have been received from sophisticated and institutional investors for the placement, designed to issue ~600 million new shares at AU$0.04 per share to raise AU$24 million. 

Under the entitlement offer, the company plans to issue ~125 million new shares to raise up to AU$5 million.

The company has also informed that Clive Donner will be appointed as the managing director after the issuance of shares under the placement. Donner is an experienced mining private equity and financing expert.

Source: Company update

Details of the placement and entitlement offer

The offer price of AU$0.04 per share indicates a 63.6% discount to AU$0.11 per share – the last traded price on 20 February 2023.

The placement received support from professional and sophisticated investors. It included multiple new and existing offshore and domestic natural resources-focused organisations.

Here’s the list of firm commitments received from shareholders -

• Pacific Road Capital Management (PRCM) - AU$4.05 million

• Present non-executive director - John Featherby – 5 million shares

• Proposed managing director - Clive Donner – 12.5 million shares

• Incoming chief operating officer - Milan Jerkovic - and associates – 12.5 million shares

The company intends to issue ~125 million new shares under the entitlement offer to raise up to AU$5 million. The offer price represents 1 new share for every 10.64 shares held by shareholders on the record date.

Entitlements are non-renounceable and cannot be transferred or traded on ASX.

The participants in the entitlement offer and placement will get one free attaching option for every two shares to be issued. The option's exercise price is AU$0.06 each, and the exercise date is on and before 31 December 2024.

Use of funds

Funds raised via placement and entitlement will be utilised in Nifty site costs, Nifty project technical studies, and for working capital purposes. Nifty is a copper project of Cyprium, situated at the north-eastern Pilbara region of Western Australia.

Cyprium is focused on restarting the Nifty operation as a long life integrated large-scale open pit mine.