THE BOURSE WHISPERER: Cyprium Metals (ASX: CYM) announced it is to acquire Metals X’s portfolio of Western Australian copper assets.
Cyprium Metals has entered into a Share Sale Agreement with Metals X to acquire the latter’s 100 per cent-owned entity Paterson Copper Pty Ltd, the owner of the Nifty copper mine, Maroochydore copper project and the Paterson Exploration Project, which includes a farm-in agreement with IGO Limited.
“This is a truly transformational transaction for Cyprium which provides us with an outstanding portfolio of copper projects,” Cyprium Metals executive director Barry Cahill said in the company’s ASX announcement.
“We have regularly ranked Nifty at the top of our Australia copper project acquisition target list and are delighted to have secured this as part of our quality suite of copper development projects.
“Nifty and Maroochydore are a perfect fit for the skill set of our management team, who have a track record of creating value and producing copper, as most recently demonstrated with Finders Resources at the Wetar copper project.
“With favourable market fundamentals for copper, the acquisition of this portfolio represents an outstanding opportunity to generate significant value by securing more than 1.1 million tonnes of contained copper at Nifty and Maroochydore, including significant infrastructure, as well as the extensive Paterson Exploration JV with IGO in the highly prospective Paterson Province.
“We are excited about the opportunity to execute our simplified development plan which consists of an open pit mining operation, feeding a heap leach and SX-EW processing flowsheet.
“Cash flows generated are intended to be utilised towards the development of the Maroochydore and Cyprium’s existing Murchison copper-gold projects.”
Cyprium has agreed to pay Metals X a total $60 million upon completion of the transaction, comprising an upfront cash payment of $24 million inclusive of the a$1 million deposit already paid, and convertible notes with a face value totalling $36 million.
Cyprium has received binding commitments to fund the transaction through a $90 million placement to professional and sophisticated investors.
TO READ THE FULL ANNOUNCEMENT: CLICK HERE