PERTH (miningweekly.com) – Copper hopeful Cyprium Metals is hoping to raise some A$29-million in a conditional share placement and pro-rata non-renounceable entitlement offer to fund technical studies at the Nifty copper project, in the Pilbara.

The company has received firm commitments from institutional and sophisticated investors for the issue of 600-million new shares, at a price of 4c each, to raise an initial A$24-million, subject to shareholder approval at the company’s general meeting which is currently planned for August.

The offer price represented a 63.6% discount to Cyprium’s last trading price on February 20

Subscribers for the share placement will also be entitled to participate in the proposed entitlement offer, which will proceed following the issue of the placement shares and the company resuming share trading on the ASX.

The company has requested that its voluntary suspension should be lifted, and reinstatement will be subject to ASX conditions.

On the resumption of share trading, Cyprium will undertake an entitlement offer aimed at raising a further A$5-million. The entitlements are non-renounceable and will not be tradeable on the ASX, or otherwise transferable.

Cyprium said on Wednesday that each of the participants in the share placement and entitlement offer would also receive one free attaching option for every two shares subscribed for, which would be exercisable at 6c each before the end of 2024.

"The board is very appreciative of the strong support shown from current shareholders and is looking forward to welcoming a number of new institutional investors onto the register,” said proposed MD Clive Donner.

“Once this equity raising has been completed, Cyprium will be able to continue to advance the Nifty technical studies and funding package enabling the delivery and execution of our strategy as an integrated copper oxide heap leach solvent extraction and electrowinning (SX-EW) starter operation and the larger scale sulphide openpit operation.”

Funds raised will be used for the completion of technical studies at Nifty, as well as for site costs and working capital.

The Nifty development strategy includes the integration of a copper oxide heap leach SX‐EW starter openpit operation that will be complemented by the larger scale sulphide openpit, which together will provide a 15‐year mine life based on more than 900 000 t of contained copper resource.

The integrated business plan for Nifty is expected to produce a long‐life production profile with two product streams which will provide a lower risk operating approach with maximum processing flexibility. This plan is expected to produce annualised production of between 48 000 t/y and 65 000 t/y of copper production.

It is anticipated that the oxide heap leach SX‐EW will produce approximately 20 000 t/y to 25 000 t/y of copper cathode for over six years with expected additional oxide feed from the larger openpit. The oxide leach SX‐EW project is expected to provide the required funding to restart the sulphide concentrator, which is expected to produce between 28 000 t/y and 40 000 t/y of copper in concentrate.