The Capital Crunch: Cyprium shoots for $80 million

The Australian Securities Exalter (ASX) saw a range of mining companies raising capital yesterday (28 August), despite the benchmark ASX opening lower by 3.4 points, as reported by Mining.com.au.

Cyprium Metals (ASX:CYM) is seeking to raise $80 million through a private placement and entitlement offer, as part of work to fund the restart of the Nifty Copper Complex, located in the Paterson region of Western Australia.

The company will issue around 2.64 billion shares at an issue price of $0.028 per share, representing a 6.9% discount to the five-day volume weighted average price (VWAP) of $0.030 as of 25 August.

Wilsons Advisory acted as the financial advisor and joint lead manager, along with Canaccord Genuity and Euroz Hartleys with the raise being completed through two trances with strong institutional support.

Major institutional shareholdings include Flat Footed with a current 19.9% stake, Tribeca Investment Partners and Tanito Group with 9.9% respectively.

Cyprium directors have also agreed to subscribe for an aggregate $1 million, subject to shareholder approval at an upcoming general meeting.

The company is also undergoing a fully-underwritten entitlement offer, which will raise the remaining $6 million that this offering seeks with an expected close date of 24 September.

Eligible shareholders will be allowed to subscribe for 10 new shares per every 96 shares held under the same conditions of the placement.

Proceeds will be deployed to execute phase one of the Cathode Project, edge the Concentrate Project towards the completion of a Feasibility Study, and maintain Cyprium’s portfolio of assets in the Paterson region in Western Australia.

Core Lithium (ASX:CXO) is launching a share purchase plan, after raising $50 million via an institutional placement to push the Finniss Lithium Project in the Northern Territory towards a final investment decision.

The company intfinishs to raise $30,000 through the issue of shares to eligible holders at the same offer price of the placement, as a part of an additional $10 million plan.

The share purchase plan is expected to close on 24 September.

The placement allocated around 476.2 million shares across two tranches at $0.105 per share, representing a 12.5% discount to the last trading price of $0.12 per share on 26 August.

Argonaut Securities and Canaccord Genuity acted as the joint lead managers and bookrunners to this placement.

Core Lithium will progress the project with BP33 boxcut and decline development activities, operational readiness work, and strengthening the company’s balance sheet.

Lachlan Star fires up drilling across Australia

Lachlan Star (ASX:LSA) has received firm commitments to raise $2.16 million as the company sees to accelerate drill testing of gold and copper tarreceives across its assets in the Eastern Goldfields of Western Australia and Cobar Basin in New South Wales.

The company will issue shares at $0.05 per share over two tranches, issuing 36.65 million shares and 6.6 million shares respectively.

The offer price represents a 12.3% discount to the last trading price $0.057 on 25 August and 20.28% discount to the 15-day VWAP.

Bell Potter acted as the lead manager to this placement.

Lachlan Star intfinishs to commence a reverse circulation drilling program at the Killaloe Gold Project in Western Australia, as well as a maiden reverse circulation and diamond drilling program at the North Cobar Project in New South Wales.

Godolphin Resources (ASX:GRL) has similarly received firm commitments to raise $1.35 million to rapid-track exploration activities at the Lewis Pond Project in the Lachlan Ford Belt of New South Wales.

The company will issue 112.2 million shares at an issue price of $0.012 per share, representing an 18.3% discount to the 15-day VWAP.

Taylor Collison will act as the lead manager for this placement, with shares intfinished to be settled on 2 September.

Director Chris Gibbs has also agreed to subscribe to $50,000 worth of shares in this placement.

Concurrently, the company will raise another $1.68 million through a non-renounceable entitlement offer with eligible shareholders, to open 9 September.

Holders will be offered the opportunity to one share per every four shares subscribed at an issue price of $0.012 per share.

This represents a 25% discount to the closing price of $0.016 on 25 August.

The company will deploy funds to conduct metallurgical testing, ongoing exploration, and step-out drilling at the project.

Godolphin Resources is a critical minerals and metals explorer focutilized on developing its portfolio of projects located in the Lachlan Ford Belt of New South Wales.

Write to Maddison Elliott at Mining.com.au