Cyprium Metals enters $6 million secured loan deed for Nifty Copper Project restart
Proactive Investors
Published Mar 24, 2023 12:50
Updated Mar 24, 2023 13:30
Cyprium Metals enters $6 million secured loan deed for Nifty Copper Project restart
Cyprium Metals Ltd (ASX:CYM, OTC:CYPMF) has entered into a $6 million secured loan deed for the restart of its Nifty Copper Project in the Pilbara region of Western Australia.
The proceeds from the loan deed will be used for the upcoming interest payment on the company’s existing unsecured $36 million convertible notes and for working capital purposes while it undertakes a strategic review of all assets in the company.
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 restart production.
“Highly attractive portfolio”
Cyprium managing director Barry Cahill said: “Copper market fundamentals combined with Cyprium’s quality portfolio of more than 1.6 million tonnes 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.
“The board is committed to preserving the value of the company’s assets as a priority while the strategic review is undertaken.”
Strategic review
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, Cyprium will work with its advisors and key stakeholders to develop a new strategic plan to maximise shareholder value.
The 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 realisation initiatives; and
- composition of the board and management.
Preparation of the new strategic plan and implementation of financial restructuring 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.
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