Cyprium Metals has prepared a $29 million capital raise to support the restart of its Nifty copper mine in WA.
The copper explorer is poised to issue roughly 600 million new shares via a conditional placement at an offer price of $0.04 per share, injecting a healthy $24 million into the company.
The offer price represents a 63.6 per cent discount to the last traded price of $0.11 on February 20.
The placement has so far attracted the attention of sophisticated and professional investors, including resources-focused institutions both nationally and abroad.
Notably, private equity firm and existing shareholder, Pacific Road Capital Management (PRCM), agreed to subscribe for $4.05 million in the placement. Once fulfilled, this will bring PRCM’s stake in Cyprium to 9.9 per cent.
Cyprium will also raise up to an additional $5 million through an entitlement offer. Under the offer, subscribers for the initial placement shares will be eligible to purchase one new share for every 10.64 shares held.
These entitlement shares are non-renounceable, non-transferable, and will not be tradable on the ASX.
The capital raise is subject to shareholders approval at a general meeting set for the end of August.
Nifty strategy
The combined $29 million capital raise will primarily go to funding the restart of the Nifty copper mine in WA, which Cyprium acquired from Metals X in 2021.
The cash injection will be used to complete the Nifty project technical studies, site costs, and to bolster working capital.
Cyprium expects Nifty to become a long-term producing copper mine, with a life of mine in excess of 15 years, based on a roughly 900,000 tonne copper resource.
When fully operational, Nifty is expected to produce between 48,000 to 65,000 tonnnes per annum of copper.
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