Cyprium Metals Limited (ASX: CYM) has entered into an exclusive Letter of Intent with Glencore International AG for A$50 million in respect of a Copper Cathode Offtake Secured Prepayment Facility.
The money vwill be used for funding the Nifty Copper development as part of the debt financing for the restart of the Nifty Copper Project, which includes capital expenditure, contingencies, working capital, and financing costs.
This exclusive Letter of Intent includes a non-binding term sheet for both offtake arrangement and project funding. This is part of the targeted A$240 million to A$260 million debt funding package to finance the restart of the Nifty Copper Project, which is expected to include senior secured financing and secured offtake financing.
Under the terms of the exclusive Letter of Intent, CYM and GLN will work towards finalising outstanding due diligence activities, and documentation for the project funding for execution, which is being done in conjunction with ongoing advanced discussions with the potential secured senior debt providers.
Key Terms of the Copper Cathode Prepayment Facility
Indicative terms – Offtake
• 100% of Copper Cathode produced at the Nifty Copper Project, up to a maximum of 120,000 tonnes
• Offtake pricing of copper cathode shipments determined by reference to average market rates
Indicative terms – Prepayment Facility
• Facility amount: AUD50 million
• Facility term: 60 months
For further information please visit: https://cypriummetals.com/
