Cyprium funds Nifty growth as first cathode target nears

Institutional Placement Funds Nifty’s Next Stage

Cyprium Metals Limited (ASX:CYM) has raised approximately A$20.7 million from institutional investors at A$0.330 a share, giving the Nifty Copper Complex redevelopment a firmer financial base as it approaches first cathode production. The issue price is 9.6% below Cyprium’s last traded price of A$0.365 and 14% below its 10-day volume-weighted average price.

“Phase 1 Cathode Restart. Refer to important information regarding the Nifty PFS on slide 3.”

The placement will issue approximately 62.8 million shares, taking the company’s pro-forma share count to 640.9 million before any share purchase plan allotment. Cyprium also intends to offer eligible shareholders up to A$5 million of shares at the same price, although the SPP is not underwritten and may be scaled back or accept oversubscriptions.

First Cathode Target Supports Expansion Push

The funding arrives with Cyprium’s heap leach restart moving from commissioning towards production. The company says the SXEW plant is in its final weeks before commissioning and remains on track for first copper cathode in Q4 2026, following the Nifty leach commissioning milestones reported earlier this month.

“Production Area on Existing Heap Leach Pads.”

Phase 1 is designed to produce about 6,000 tonnes a year of cathode by reprocessing material already on the heap leach pads. Cyprium wants to use the initial restart as a platform for a larger expansion, with studies examining restoration of the SXEW plant to more than 20,000 tonnes of installed annual capacity. That capacity figure is not a production target and would still depend on feed, grades, recoveries, plant availability and other operating factors.

Nebari Debt Extension Remains Conditional

“Restoration of additional cells and process areas is a quick and cost-effective way to grow cathode production in strong market.”

Cyprium has signed a term sheet with existing lender Nebari for up to US$40 million of additional senior secured debt. The proposed facility comprises a US$25 million Tranche 2 for DFS work, SXEW design, long-lead items and early works, followed by a US$15 million Tranche 3 intended to fund execution of the SXEW expansion.

The debt is not yet fully committed. Both tranches require binding loan documentation and lender due diligence, while Tranche 3 also depends on a final investment decision for the SXEW expansion and a loan-to-value ratio below 0.3 times. The proposed terms include quarterly interest payments, a 2.5% original issue discount, a 2% arrangement fee, a 0.5% annual administration fee and warrants. Repayments of 12.5% of drawn amounts would begin after the December quarter of 2027, with maturity scheduled for 31 December 2029.

Funding Targets DFS and Site Infrastructure

Cyprium’s indicative A$77.8 million sources-and-uses table excludes the SPP and assumes full drawdown of both proposed Nebari tranches. It allocates A$12 million to the open-pit DFS, A$14 million to infrastructure including the aerodrome, access road and power generation, A$41 million to SXEW expansion and early works, and A$10.8 million to working capital.

“Conceptual Site Plan2”

Caption and image © Cyprium Metals Limited. From “Capital Raise Presentation”, 30 Oct 2026.

That ambition builds on the company’s earlier SXEW capacity expansion plans, which contemplated growing from the initial approximately 6,000-tonne phase towards roughly 20,000 tonnes of installed capacity. Cyprium is also running a roughly 10,000-metre drilling programme and says its DFS is targeted for completion in the first half of calendar 2027.

The financing improves Cyprium’s ability to progress several workstreams at once, but it also increases the importance of execution and funding conditions. After the placement, the company presents A$58.3 million of cash against A$39 million of senior debt and A$36 million of convertible notes, or pro-forma net debt of A$16.7 million, before the proposed debt extension and excluding the SPP.