Cyprium Issues 2.64 Billion Shares in A$74M Placement to Fund Growth
Cyprium Metals has completed the first tranche of a significant capital raise, securing approximately A$74 million to advance its copper development projects in Western Australia. The second tranche awaits shareholder approval, underscoring investor confidence in the company’s growth strategy.
- Raised A$74 million via first tranche placement at A$0.028 per share
- Issued 2.64 billion new shares in the initial tranche
- Second tranche of 2.13 billion shares pending shareholder approval in October
- Funds earmarked for Cathode Project, Paterson Province assets, and Concentrate Project feasibility
- Placement managed by Wilsons Advisory, Canaccord Genuity, Euroz Hartleys, and Wallabi Group
Capital Raise Completion
Cyprium Metals Limited (ASX – CYM) has successfully completed the first tranche of its two-part placement, raising approximately A$74 million before costs. This tranche involved issuing around 2.64 billion new fully paid ordinary shares at an issue price of A$0.028 each. The capital injection marks a significant step forward in funding the company’s strategic copper projects in Western Australia.
The second tranche, comprising over 2.1 billion shares; including allocations to company directors; is set to be issued subject to shareholder approval at an upcoming meeting scheduled for October. This staged approach reflects Cyprium’s commitment to maintaining strong governance and investor engagement as it expands its operations.
Strategic Use of Funds
The proceeds from the placement will be directed towards several key initiatives. Foremost is the execution of phase one of the Cathode Project, a critical component in Cyprium’s plan to restart copper production efficiently. Additionally, the company aims to strengthen its extensive asset base in the Paterson Province, a region known for its rich mineral deposits.
Funds will also support the completion of a feasibility study for the Concentrate Project, which could unlock further value by processing copper concentrates. Maintaining a healthy balance sheet remains a priority, ensuring Cyprium is well-positioned to navigate the evolving market landscape.
Company Outlook and Market Position
Cyprium’s flagship asset, the Nifty Copper Complex, boasts substantial copper reserves and existing infrastructure, providing a solid foundation for redevelopment. The company’s portfolio also includes promising copper-focused properties in the Paterson and Murchison Provinces, enhancing its long-term growth potential.
With approvals in place and recent investments in infrastructure, Cyprium is fast-tracking the restart of operations at Nifty, targeting near-term cash flow generation through heap leach reprocessing. The capital raise underscores market confidence in Cyprium’s strategy to leverage tier-one assets in Western Australia’s mining sector.
The placement was managed by a consortium of financial advisers and lead managers, including Wilsons Advisory, Canaccord Genuity, Euroz Hartleys, and Wallabi Group, with legal advice from Confidant Partners, reflecting a well-supported capital raising process.
Bottom Line?
As Cyprium advances its copper projects with fresh capital, all eyes will be on the upcoming shareholder vote and the progress of its feasibility studies.
Questions in the middle?
- Will shareholder approval for the second tranche proceed smoothly in October?
- How will the new capital impact Cyprium’s share price and dilution concerns?
- What are the timelines and expected outcomes for the Cathode and Concentrate Projects?
