Cyprium Metals Ltd (ASX:CYM, OTC:CYPMF) is ready to dial a suite of international debt capital investors, bringing it one step closer to restarting the Nifty Copper Project in Western Australia.
The copper explorer will pick up the phone from tomorrow and make a series of fixed-income investor calls, seeking support for a contemplated senior secured bond issue.
The bond issue being considered forms part of a total debt funding package, designed to support a project restart at Nifty and bring the copper camp back to its glory days.
Approvals in the can
Cyprium has all the regulatory approvals prior to financing in the can and the conversations it has this week could lead to a USD-denominated senior secured bond with a five-year tenor, subject to inter alia market conditions.
If the bond issue comes to fruition, the net proceeds (together with an offtake pre-payment facility inked late last year) will make up the A$240 million to A$260 million debt funding required to support a project restart.
Prices A$1,000 higher than restart study
Speaking to the contemplated bond issue, Cyprium managing director Barry Cahill said: “We are very pleased to have finalised due diligence and documentation to commence fixed income investor calls for a contemplated senior secured bond issue with Pareto Securities as the manager.
“The contemplated bond issue is part of the full finance package for the restart of the Nifty Copper Project.
“The restart project economics remain very robust and are further enhanced based on current copper prices of around A$13,000 per tonne.
“These copper prices are A$1,000 per tonne higher than used in the Nifty Copper Project restart study.
“As all of the required regulatory approvals have been able to be completed prior to financing being received, we are looking forward to completing our total funding package so that we can commence executing our Nifty Copper Project restart development plans.”
About Nifty
The Nifty Copper Mine is on the western edge of the Great Sandy Desert in WA’s north-eastern Pilbara region, roughly 330 kilometres southeast of Port Hedland.
Much is known about what’s in the ground — Nifty hosts a 2012 JORC-compliant mineral resource that spans 940,200 tonnes of contained copper.
Fast forward to today, and Cyprium is focused on a heap leach SX-EW operation to retreat the current heap leach pads, as well as open-pit oxide and transitional material.
Future studies will investigate the potential restart of the copper concentrator, which could one day treat open-pit sulphide material.
Cyprium will keep the market updated on its next steps at Nifty and across its broader project portfolio, which comprises copper and gold assets across WA’s Paterson and Murchison districts.