Cyprium Metals Limited (ASX:CYM) has commenced a strategic review of its assets and secured a new loan.
Secured Loan Deed
As outlined in the Company’s 23 February 2023 ASX Announcement, the company was unable to secure senior debt financing for the Nifty Copper Project Restart on commercially attractive terms and as a result, the previously announced A$35 million equity raise was not completed.
As a result, Cyprium has entered into a Secured an A$6 million Loan Deed with Avior Asset Management No. 2 Pty Ltd,
The proceeds from the Loan Deed will be used for the upcoming interest payment on the company’s existing unsecured A$36 million Convertible Notes and for working capital purposes whilst the company undertakes a strategic review on all assets in the company.
Strategic Review
Cyprium owns a high-quality portfolio of West Australian copper development opportunities with a total of +1.6Mt2 of contained copper in JORC 2012 Mineral Resources (MRE) across its projects, comprising:
• Nifty Copper Mine (currently on care and maintenance) containing an MRE of 940,200 of contained Cu
• Maroochydore Copper Project containing an MRE of 486,000t of contained Cu
• Murchison Copper Project, comprising the Cue Copper-Gold Project (MRE of 51,500t of contained Cu) and Nanadie Well (MRE of 162,000t of contained Cu)
• Paterson Exploration Project (which includes a farm-in agreement with IGO Limited)
All of Cyprium’s copper development projects MRE’s are shallow, open in multiple directions and at depth, giving good potential to substantially increase the current resource endowment.
Nifty is a significant near-term long life brownfield copper development project located in the Tier 1 mining jurisdiction of Western Australia, with extensive infrastructure in place to re-start production.
As a result of the increased activity and interest in the battery minerals sector, the company has commenced discussions to allow the development of a new strategic plan. The strategic plan will involve the short medium- and long-term opportunities for the company in light of the positioning of copper in the critical metals supply chain.
During this period, the company will work with its advisors and key stakeholders to develop a new strategic plan with the objective of maximizing shareholder value.
A key part of the strategic review will be for the Board to evaluate:
• potential life of mine development scenarios at Nifty, including the open-pit sulphide potential
• alternative longer-term financing strategies
• asset realization initiatives
• composition of the board and management
Preparation of the new strategic plan and implementing a financial restructure is expected to take several months to complete. Cyprium is committed to maintaining its portfolio of copper projects in good standing to facilitate the rapid resumption of development, pending the outcomes of the strategic review.
“Copper market fundamentals combined with Cyprium’s quality portfolio of more than 1.6Mt of contained copper at Nifty, Maroochydore and the Murchison, including significant infrastructure, as well as the extensive Paterson Exploration JV with IGO in the highly prospective Paterson Province presents a highly attractive portfolio in an environment where battery metals are in strong demand,” Managing Director, Barry Cahill, said.
“The board is committed to preserving the value of the company’s assets as a priority whilst the strategic review is undertaken.”
For further information please visit: https://cypriummetals.com/
