Cyprium Metals Ltd (ASX:CYM, OTC:CYPMF) is targeting a capital raise of around A$13.5 million before costs, having received strong commitments for a two-tranche placement of some 483.2 million new fully paid ordinary shares in the company at an issue price of A$0.028.
The company says the placement received strong support from cornerstone investors, existing institutional shareholders and CYM directors.
A productive year
Executive chair Matt Fifield said: “It has been a very productive 2024. The company had strong support from shareholders to complete this important capital raise, positioning the company for another great year in 2025.
“We expect to build off of our recently released PFS to materially advance the redevelopment of the Nifty Copper Complex in the first half of the year.”
This included Flat Footed LLC (FF) which agreed to cornerstone the placement in the amount of A$5.3 million, in exchange for 20 million additional unlisted options, subject to shareholder approval.
Directors of the company, or their nominees, have also committed to subscribe for placement shares in the aggregate amount of A$3.0 million.
FF’s commitment and the directors’ participation will be subject to shareholder approval, to be sought at an extraordinary general meeting (EGM) in January.
At the completion of the placement, FF stands to hold some 19% of the company’s fully paid ordinary shares.
FF’s participation also remains subject to renewal of a previously obtained FIRB approval, which is expected in early 2025.
Funds for Nifty
Cyprium plans to channel proceeds from the placement into a range of operational and financial purposes, including:
- covering costs associated with the Nifty project site;
- advancing permitting support and definitive feasibility study (DFS) preparations;
- maintaining tenements and conducting geological work; and
- addressing financing obligations tied to its MLX convertible notes and Glencore facility.
Additionally, funds will be allocated to working capital and covering the costs associated with the placement itself.
Placement structure and terms
The A$13.5 million will be raised using a two-tranche placement. Tranche 1 will raise around A$5.2 million under Cyprium’s existing placement capacity as per ASX Listing Rules 7.1 and 7.1A.
Tranche 2 aims to raise about A$8.3 million, subject to shareholder approval, which includes participation from cornerstone investor Freeport Financial (FF) and company directors.
The issue price for the placement shares is A$0.028 per share, a 3.7% premium to the last closing price of A$0.027 on December 10 and a 6.7% premium to the five-day volume weighted average price (VWAP) of A$0.026.
Subscribers will also receive one unlisted option for every two shares purchased, with an exercise price of A$0.042 and an expiry date of December 31, 2027.
Canaccord Genuity (TSX:CF, LSE:CF) acted as lead manager to the placement.
The company also intends to undertake a non-renounceable retail entitlement offer to raise up to A$3.0 million on the same terms as the placement, including the placement options.
The company is advanced in finalising the documentation for this offer and intends to make a further announcement next week.