Secured Loan Agreement
Cyprium Metals Limited (ASX: CYM) (“CYM”, “Cyprium” or “the Company”) is pleased to advise it has
secured an 18-month, A$21.0 million1 equivalent USD-denominated secured loan facility with Nebari
Natural Resources Credit Fund II, LP. The facility has refinanced the existing short term Secured Loan Deed
facility with Avior Asset Management No. 2 Pty Ltd and provides working capital to advance the
development of Nifty.
Cyprium and Nebari have executed formal loan documentation for a Senior Secured Loan Facility (Loan
Facility) to provide up to USD14.5 million in two Tranches, with USD7.5 million drawn at closing and USD7.0
million available to be drawn subject to a limited number of conditions precedent.
Key terms of the Loan Facility
The material terms of the Loan Facility are as follows:
• Funded amount: up to USD14.5 million, net of original issue discounts (OID)
• Facility term: until 31 December 2024
• Coupon: Secured Overnight Financing Rate (SOFR) +6.5% p.a. payable monthly
• OID: 5.0% on Tranche 1 and 10.0% on Tranche 2
• Amortisation: 100% bullet on maturity
• Warrants: 2-year, 1 for 5.5 warrants which will be priced at either a 20% premium to the
share price of a future equity raise or, if no equity raise is completed by
31 December 2023, the warrant strike price shall be priced at A$0.088 per share
• Security: over the assets of Cyprium and its projects
The Loan Facility contains other terms and conditions that are customary for an agreement of this nature.
It is anticipated that this facility will be rolled into a larger, longer term development financing facility in the near term (likely within 12 months), pending the finalisation of the Nifty life of mine study on the
integrated copper oxide Heap Leach SX-EW starter operation and the larger scale sulphide open pit (refer to CYM ASX announcement dated 23 May 2023 “Cyprium Metals Corporate Update). These studies are
currently underway and anticipated to be completed by Q1 2024.
Management Comment Mr Donner, an executive with Cyprium commented “We are very pleased to have secured financing
with Nebari, who are a highly respected and experienced financier of mining projects globally. We look forward to working with Nebari in relation to this facility and also potential future facilities associated
with the development of the large open pit project at Nifty.”
see & read more on
https://wcsecure.weblink.com.au/pdf/CYM/02679439.pdf