Cyprium raising for Nifty reboot

Cyprium Metals is seeking up to $26 million from investors to fund a restart of its Nifty copper project in WA’s Pilbara region.

Institutional and sophisticated investors were offered company shares at 11.5 cents each via a placement component of the raise, a 28 per cent discount on its last close price.

The company said it had received commitments to the tune of $16 million and was hoping to book a further $10 million through a one for eight share non-renounceable entitlement offer at the same price.

Proceeds from the raise are set to go towards restarting its Nifty copper project in the Pilbara, which has been on care and maintenance since 2019.

The company says it wants to turn the outfit into a long-term 25,000 tonne per annum producing copper mine, an exercise estimated to cost between $240 million and $260 million.

The call for capital follows a $50 million offtake prepayment facility signed with Glencore earlier this week for copper cathode from the project.

Cyprium said it was still in discussions with senior debt providers to tie up further financing.

Canaccord Genuity and Euroz Hartleys jointly led the raise.  

Subiaco-based Longreach Capital is providing financial advice, with Steinepreis Paganin acting as legal.

Cyprium shares were down 28 per cent to trade at 12 cents.