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Cyprium Metals agrees LOI with Glencore with regards to Nifty Copper

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Global Mining Review,


Cyprium Metals Ltd (CYM) has entered into an exclusive Letter of Intent (LOI) with Glencore International AG for AUS$50 million in respect of a Copper Cathode Offtake Secured Prepayment Facility.

The facility will be used for funding Nifty Copper, as part of the debt financing for the restart of the Nifty Copper Project, which includes capital expenditure, contingencies, working capital, and financing costs.

This exclusive LOI includes a non-binding term sheet for both offtake arrangement and project funding. This is part of the targeted AUS$240 million to AUS$260 million debt funding package to finance the restart of the Nifty Copper Project, which is expected to include senior secured financing and secured offtake financing.

Under the terms of the exclusive Letter of Intent, CYM and GLN will work towards finalising outstanding due diligence activities, and documentation for the project funding for execution, which is being done in conjunction with ongoing advanced discussions with the potential secured senior debt providers.

Highlights:

  • An exclusive LOI for a Secured Copper Cathode Prepayment Facility has been signed with Glencore, under which:
    • Offtake arrangement for 100% of the Copper Cathode produced during Phase 1 of the Nifty Copper Project restart.
    • AUS$50 million Secured Offtake Prepayment Facility.
  • The Secured Offtake Prepayment Project Funding from Glencore is part of a total debt funding package for the Nifty Copper Project restart.
  • Advanced discussions are continuing with Senior Debt counterparties, who are undertaking due diligence activities and reviewing financing documentation.

Managing Director Barry Cahill commented:

“We are very pleased to enter into an exclusive LOI for a Copper Cathode Offtake Secured Prepayment Facility with Glencore. This is part of a fully funded finance package for the restart of the Nifty Copper Project.

“The restart project economics are very robust, and we have continued to make further improvements to the Nifty Copper Project during the financing process.

“We are looking forward to completing our total funding package so that we can commence executing our Nifty Copper Project restart development plans.”

Read the article online at: https://www.globalminingreview.com/mining/30062022/cyprium-metals-agrees-loi-with-glencore-with-regards-to-nifty-copper/

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Australian mining news Copper mining news