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Highlights
- Cyprium Metals (CYM) to raise funds through a two-tranche placement.
- Proceeds to support redevelopment of the Nifty Copper Complex.
- Cornerstone investors and directors strongly back the initiative.
Cyprium Metals (ASX:CYM) has announced plans to raise approximately A$13.5 million before costs through a two-tranche placement to fund the redevelopment of its Nifty Copper Complex. The placement has secured commitments for around 483.2 million new fully paid ordinary shares at an issue price of A$0.028 per share, receiving strong support from cornerstone investors, institutional shareholders, and company directors. Freeport Financial (FF) has committed A$5.3 million to the placement and will receive 20 million additional unlisted options, subject to shareholder approval. Cyprium’s directors, or their nominees, have collectively committed A$3.0 million to the initiative, with shareholder approval to be sought at an extraordinary general meeting in January. Following the placement, FF is expected to hold approximately 19% of Cyprium’s fully paid ordinary shares, contingent on renewing a previously obtained FIRB approval anticipated early next year.
The funds raised will be allocated to several key areas, including supporting site costs for the Nifty Copper Complex, advancing permitting and preparations for a definitive feasibility study (DFS), maintaining tenements, conducting geological assessments, and addressing financing obligations tied to convertible notes and other facilities. Additional funds will cover working capital needs and placement-related expenses. The two-tranche structure includes Tranche 1, raising A$5.2 million under Cyprium’s existing placement capacity as per ASX Listing Rules 7.1 and 7.1A, and Tranche 2, targeting A$8.3 million, pending shareholder approval. The placement shares will be issued at a 3.7% premium to the last closing price and a 6.7% premium to the five-day volume-weighted average price (VWAP). Subscribers will also receive one unlisted option for every two shares purchased, exercisable at A$0.042 with an expiry in late 2027.
In addition to the placement, Cyprium plans to conduct a non-renounceable retail entitlement offer to raise up to A$3.0 million under similar terms. The company is in the process of finalizing documentation for the offer and expects to make an announcement next week. This fundraising effort aligns with Cyprium’s goal to position itself for significant advancements in the redevelopment of the Nifty Copper Complex, laying the foundation for a productive year ahead.
