Copper play Cyprium raising $35m at 63.6pc discount; PE backer in
Western Australian copper junior Cyprium Metals was asking investors for a $35 million cash injection on Monday morning, offering to part with shares at a whopping 63.6 per cent discount to the last close.
Cyprium has three copper projects in Western Australia. Louise Kennerley
The raise was split into a $20 million conditional placement, which would have room for $10 million in oversubscriptions, and a $5 million entitlement offer.
Potential investors were told Sydney-based private equity investor Pacific Road Capital Management would invest in the raise and own about 9.9 per cent of the company on completion. It would also have the right to appoint a board director.
The 4¢-a-share offer price included one-for-two options with a December 2024 expiry and 6¢ strike price.
The proceeds would help pay for restarting its flagship project Nifty, pay creditors, maintenance expenditure on tenements, studies and approvals for open-pit mining, and general costs, according to a term sheet sent to potential investors.
Bids into the placement were due Monday afternoon for investors in Asia and Tuesday morning for rest of the world. Canaccord Genuity was the sole lead manager and the book runner on the raise.
Cyprium owns three copper assets in WA, which together have a mineral resource of more than 1.6 million tonnes of container copper, according to the company. Nifty, which was up and running for 25 years, now has a 15-plus year mine life and 900,000 tonnes of copper resource.
The company is aiming to restart the project at 20,000 to 25,000 tonnes annual copper production in about two years from now.
Should it be successful in raising $35 million, it would have a $64.2 million market capitalisation and $72.8 million enterprise
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