Lundin Mining Announces Updated Share Capital and Voting Rights

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Perth, Australia (ABN Newswire) – Cyprium Metals Ltd (ASX:CYM) is pleased to announce a fundraising via placement and pro rata non-revocable rights issue to raise up to approximately $26 million before fees .

STRONG POINTS

– Firm commitments received for a Placement to raise $16 million at 11.5 cents per share

– Offer of additional non-revocable pro rata rights to raise up to $10 million

o 1 new share for every 8 held on the record date at 11.5 cents per share
o The offer will be open to all eligible Cyprium shareholders

– Funds raised will place Cyprium in a strong financial position to continue advancing the development of the Nifty Copper project

– Capital raise supports recently announced $50 million prepayment facility with Glencore

– Advanced discussions continue with Senior Debt counterparties

Managing Director Barry Cahill commented:

“The Board is very grateful for the strong support shown by current shareholders and is pleased to welcome a number of new investors to the register.

Cyprium has made significant progress over the last 15 months both in terms of increasing the mineral resource estimate, but also particularly in the areas of SX/EW and infrastructure renovation, government approvals and metallurgical optimization.

With the completion of this fundraising, Cyprium will be able to continue to advance the financing of senior debt, with the finalization of the financial package enabling our construction plans and the production of copper sheets on site in the second half of 2023.”

The Company has received firm commitments for a placement to issue approximately 139.1 million new shares (Placement Shares) at 11.5 cents each (Offering Price) to raise $16 million (Placement) from well-informed and institutional investors.

The Company is also pleased to announce a non-cancellable pro rata rights offering at the offering price of one (1) new share for every eight (8) shares currently held by eligible shareholders to raise up to 10 million dollars (right offer).

The new shares to be issued under the Right Offering will be issued at the same price as the Placement Shares.

Use of funds

Proceeds from the placement and rights offering will be applied as part of the financing strategy to finance the restart of the Nifty Copper project which will aim to provide a sustainable, secure and stable supply of copper metal at 25,000 tpa.

As announced on June 27, 2022, Cyprium entered into an exclusive letter of intent with Glencore International AG for $50 million regarding a secured prepayment facility for copper cathode offtake, as part of the debt financing for the restart of the Nifty Copper Project, which includes capital expenditure, contingencies, working capital and financing costs. The Letter of Intent is a non-binding term sheet for the Levy Agreement and Project Financing and is part of the targeted AUD 240-260 million debt financing program to finance the restart of the Nifty Copper project. The Company continues to advance discussions with major debt providers who are undertaking due diligence activities and reviewing financing documentation.

Investment Details

Pursuant to the terms of the placement, the Company has agreed to issue approximately 139.1 million Company Placement Shares at the offering price of 11.5 cents per share to raise $16 million before fees, as part of the Company’s existing investment capacity in accordance with ASX Listing Rule 7.1. (82,648,514 Placement Shares) and 7.1A (56,481,921 Placement Shares).

Applicants for Placement Shares will be entitled to participate in the Rights Offering.

Offer of right

Under the right offering, eligible shareholders will be able to subscribe for one (1) new ordinary share for every eight (8) existing fully paid ordinary shares held at 5:00 p.m. (AEST time) on Friday, July 8, 2022 (record date ) at the bid price.

The Offer Price represents:

– 28.1% discount until the last closing on June 27, 2022;

– 19.6% discount on the 10-day VWAP until June 27, 2022 inclusive;

– 23.9% discount on the VWAP 15 days until June 27, 2022 inclusive; and

– Discount of 25.8% compared to the theoretical issue price ex-rights (TERP) until the last closing on June 27, 2022.

Cyprium will soon publish a prospectus detailing the terms of the rights offering, including details of the eligibility of shareholders to participate in the rights offering and the main risks (prospectus). The Prospectus will include a personalized Entitlement and Acceptance Form which will provide further details on how to participate in the Rights Offering.

Rights may not be waived and will not be tradable on the ASX or otherwise transferable. Shareholders who do not exercise their rights will receive no value for the rights they do not exercise.

The Entitlement Offering will include an additional facility under which eligible shareholders who exercise their full right will be able to request additional shares from a pool of those not subscribed by others. eligible shareholders (Additional Facility). In addition to the Supplemental Facility, there will also be a general overdraft facility under which the Company may place shares to non-eligible shareholders within three (3) months from the closing date of the Right Offering. .

Eligible shareholders should read the Prospectus carefully before making any investment decision regarding the Rights Offering. If you are in any doubt about the Rights Offering, you should consult your financial or other professional adviser.

Canaccord Genuity (Australia) Limited and Euroz Hartleys Limited are acting as joint bookrunners of the Offering. Fees payable to Joint Lead Managers will be further described in the Prospectus.

Longreach Capital is acting as financial advisor and Steinepreis Paganin is acting as legal advisor to Cyprium.

*To view the capital structure after the Offering, please visit:
https://abnnewswire.net/lnk/009WA5D2

About Cyprium Metals Ltd:

Cyprium Metals Limited (ASX:CYM) is poised to become a mid-tier mining company and manage a portfolio of Australian copper projects to deliver vital natural resources, strong shareholder returns and sustainable value for our stakeholders. We pursue this goal, through genuine partnerships with employees, customers, shareholders, local communities and other stakeholders, which is based on integrity, cooperation, transparency and the creation of mutual value.

Source:
Cyprium Metals Ltd.


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