Cyprium Metals has secured a A$40m ($27m) senior loan facility from Glencore for offtake financing and corporate purposes.
The loan facility, which has a four-year term, is intended to support various corporate initiatives including the advancement of early works and feasibility studies at the Nifty copper complex near Port Hedland in Western Australia (WA).
The binding term sheet also outlines that the funds from the loan will be allocated towards repaying an existing senior secured facility and covering general corporate purposes.
Cyprium Metals has also committed to raising an additional A$20m before the end of the current calendar year through various means including an equity raise, asset sales, royalty sales, and the exercise of existing options and warrants.
Upon closing the deal, Cyprium Metals and Glencore will execute the previously announced copper cathode and copper concentrate offtake agreements.
These agreements are now fully negotiated and will be implemented simultaneously with the loan facility’s closure.
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Cyprium executive chair Matt Fifield said: “We are pleased to announce that we have signed a binding term sheet with Glencore for a A$40m Loan Facility. This new loan completes the refinancing of our near-term maturities, which has been a top corporate priority.
“Commercially, we have advanced our relationship with Glencore significantly. First, our offtake agreements for copper products are in final form. We expect to execute them alongside the Loan Facility in the coming weeks.”
“Next, we have been working with Glencore to streamline our access to their downstream processing facilities – the Townsville Copper Refinery and the Mt Isa Smelter. We have already executed a small sale of off-spec material to work through logistics from Nifty mine site to Townsville.”
“Finally, we have settled the physical specifications in our concentrate sales terms. The Nifty orebody makes a clean concentrate that is low in certain impurities. We expect it will be a useful component of blended ore feed at Mt Isa as it becomes available.”
Cyprium Metals is an Australian stock exchange-listed copper company, with its flagship property being the Nifty copper mine in WA, which earlier produced significant copper from both oxide and sulphide resources.
