Cyprium Metals Raises A$1.5M in Entitlement Offer with 51% Shareholder Take-Up
Cyprium Metals has successfully closed its pro rata non-renounceable entitlement offer, raising A$1.53 million with a 51% shareholder participation rate. The company plans to issue over 54 million new shares, while retaining discretion over a significant shortfall.
- Entitlement offer raised A$1.53 million at A$0.028 per share
- 51% take-up rate from eligible shareholders
- 54.56 million new shares subscribed including Top-Up Facility
- 52.4 million shares remain as shortfall to be placed by directors
- New shares and options to be issued promptly
Entitlement Offer Closes with Moderate Take-Up
Cyprium Metals Limited (ASX: CYM) has announced the successful closure of its pro rata non-renounceable entitlement offer, which was launched in late December 2024. The offer raised a total of A$1,527,713.84 before costs, reflecting a 51% take-up rate by eligible shareholders. This capital raising was priced at A$0.028 per new share, resulting in valid applications for 54,561,162 new shares, including those applied for under the Top-Up Facility.
Top-Up Facility Boosts Subscription
The Top-Up Facility allowed shareholders to apply for additional shares beyond their entitlement, and it accounted for nearly half of the total valid applications with 24,739,619 new shares subscribed. This mechanism helped increase the overall subscription but still left a substantial shortfall of 52,419,883 shares unallocated. The directors retain the right to place these shortfall shares within three months, which could influence the company’s capital structure and shareholder base.
Strategic Implications for Cyprium Metals
Cyprium Metals is focused on redeveloping its flagship Nifty Copper Mine in Western Australia, a site with significant historical production and existing infrastructure. The funds raised through this entitlement offer will support ongoing development and exploration activities. While the moderate take-up rate suggests cautious shareholder sentiment, the company’s ability to place the shortfall shares provides flexibility to secure additional capital if needed.
Next Steps and Market Outlook
The new shares and accompanying options are scheduled for immediate issue, with formal filings to be lodged with the ASX shortly. Investors will be watching closely how the shortfall placement unfolds, as it may affect share dilution and market perception. Cyprium’s progress on the Nifty project and its broader copper assets in the Paterson and Murchison Provinces will be critical in driving future investor confidence.
Bottom Line?
Cyprium Metals’ entitlement offer provides essential funding but leaves a sizeable shortfall that could reshape its shareholder landscape.
Questions in the middle?
- How will the directors approach placing the 52 million shortfall shares?
- What impact will the shortfall placement have on share price and dilution?
- How soon will the raised capital translate into tangible progress at the Nifty Copper Mine?
