Join Proactive's Tylah Tully as she breaks down 'Just the Facts' of Cyprium Metals Ltd (ASX:CYM, OTC:CYPMF) latest ASX announcement.
The company has entered into a binding term sheet with Glencore International AG for a $40 million senior secured loan facility. The four-year loan is intended to support Cyprium's efforts to repay existing debts, advance early works, for general corporate purposes, and to enable it to conduct feasibility studies at the Nifty copper complex in Western Australia.
The agreement builds on the company’s ongoing strategic partnership with Glencore, aimed at accelerating copper production from the Nifty site.
Earlier this month, CYM released a mineral resource estimate for the above-surface material stacked on heap leach pads at Nifty, outlining 54,050 tonnes of processing-ready resource. And this resource only concerned part of the stockpiled material, with a review of historical production data indicating substantial potential for resource upside in the unsampled portion.
Cyprium’s committed to raising an additional $20 million dollars through various means, including equity raises, asset sales, and other financial instruments by the end of the current calendar year.
“Our commercial strategic partnership with Glencore continues to gain momentum,” said Cyprium Executive Chair Matt Fifield.
“We are pleased to announce that we have signed a binding term sheet with Glencore for an AUD40 million Loan Facility. This new loan completes the refinancing of our near-term maturities which has been a top corporate priority. With that step completed, we are now heightening our focus on bringing Nifty’s copper products to market.”
“Commercially, we have advanced our relationship with Glencore significantly. First, our offtake agreements for copper products are in final form. We expect to execute them alongside the Loan Facility in the coming weeks.”
“Next, we’ve been working with Glencore to streamline our access to their downstream processing facilities – the Townsville Copper Refinery and the Mt Isa Smelter. We have already executed a small sale of off-spec material to work through logistics from Nifty mine site to Townsville.”