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Highlights
- Entitlement Offer Details: Cyprium Metals Ltd (ASX:CYM, OTC:CYPMF) is pursuing a $3 million entitlement offer to eligible shareholders, aligned with the terms of its two-tranche placement announced earlier.
- Strategic Capital Raises: The company has secured significant support for its two-tranche placement, raising approximately $13.5 million, with cornerstone investor Flat Footed L.L.C. (FF) contributing A$5.3 million.
- Advancing Nifty Copper Mine Restart: Proceeds will fund operational costs, permitting, and financial commitments to accelerate the restart of the Nifty Copper Mine in Western Australia.
Cyprium Metals Ltd (ASX:CYM, OTC:CYPMF) has announced a non-renounceable entitlement offer to raise up to $3 million as part of its ongoing capital-raising initiatives in 2024. The offer enables shareholders to purchase one new fully paid ordinary share for every 16 shares held as of December 30, 2024, at $0.028 per share. Additionally, participants will receive one unquoted option for every two new shares subscribed, exercisable at A$0.042 until December 31, 2027.
The entitlement offer mirrors the terms of the recently announced two-tranche placement that raised approximately $13.5 million. This initiative underscores Cyprium’s commitment to enhancing its financial position to advance its Nifty Copper Mine project in Western Australia.
Milestone Achievements in 2024
Executive chair Matt Fifield described 2024 as a transformational year for Cyprium Metals, highlighting several key milestones. The company completed the sale of surplus equipment and launched a successful placement, collectively raising A$23 million in gross proceeds. These funds provide the financial runway necessary to progress operational goals and meet loan facility conditions.
The entitlement offer provides all shareholders with the opportunity to invest on the same terms as institutional and insider participants in the placement. The company aims to issue up to 106,979,789 new shares and 53,489,895 unquoted options under the offer.
Foreign Investment Approval Secured
The Foreign Investment Review Board (FIRB) has cleared cornerstone investor Flat Footed L.L.C. (FF) to participate in the second tranche of the placement. This approval fulfills one of the conditions required for FF’s involvement and renews prior FIRB authorization.
The remaining condition for completing Tranche 2, which aims to raise an additional A$8.3 million, is shareholder approval. The company plans to seek this approval during an extraordinary general meeting scheduled for late January 2025.
Strong Investor Participation
The two-tranche placement received robust support from cornerstone investors, institutional shareholders, and company directors. Tranche 1 raised A$5.2 million through the issuance of 185,714,285 shares at A$0.028 per share, along with 92,857,143 free-attaching unlisted options.
Flat Footed L.L.C. contributed A$5.3 million to the placement, pending shareholder approval for an additional 20 million unlisted options. Upon completion, FF will hold approximately 19% of Cyprium’s fully paid ordinary shares.
Allocating Proceeds
Proceeds from the placement and entitlement offer will support various initiatives, including:
- Covering operational expenses at the Nifty project site.
- Advancing permitting support and preparations for a definitive feasibility study (DFS).
- Maintaining tenements and conducting geological work.
- Addressing financial obligations tied to MLX convertible notes and the Glencore facility.
Additional funds will be allocated to working capital and costs associated with the entitlement offer.
Cyprium’s capital-raising efforts, coupled with strategic milestones achieved throughout 2024, position the company to advance its plans to restart the Nifty Copper Mine, underscoring its pivotal role in the Australian copper sector.
