After seven months in suspension, the Cyprium Metals Ltd (ASX: CYM) share price has returned to trade on Thursday.
Unfortunately, the ASX copper share came back with an almighty thud, dropping as much as 72% to 3.1 cents.
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What's going on with this ASX copper share?
Cyprium Metals shares have come under pressure today after it completed a $31.6 million equity raising.
The company issued 600 million new shares via a placement at an offer price of 4 cents per share, raising $24 million.
In addition, the ASX copper share has completed an entitlement offer under which it has issued 125 million new shares at the same price, raising $5 million.
The release also notes that oversubscriptions in this entitlement offer shortfall enabled the company to place an additional 65.5 million new shares, raising a further $2.6 million.
But it doesn't stop there. Each participant in the equity raising received 1 free attaching option for every 2 shares issued. These options will be exercisable at 6 cents each, on or before 31 December 2024.
Management notes that its placement was strongly supported by sophisticated and professional investors, including numerous new and existing high-quality domestic and offshore natural resources-focused institutions, family offices, and private equity investors.
This includes private equity firm and existing shareholder, Pacific Road Capital Management, (PRCM), which subscribed for $8.26 million in the equity raising, representing a 15.54% interest in the company post-equity raising.
These funds will be used to advance the Nifty Project's technical studies. This project is on the western edge of the Great Sandy Desert in the north-eastern Pilbara region of Western Australia,
Management commentary
The ASX copper share's managing director, Clive Donner, was pleased with the equity raising. He said:
The Board is very appreciative of the strong support from current shareholders and welcomes a number of new institutional investors onto the register. The oversubscribed Equity Raising has now been completed, which together with the US$14.5 million Bridging Facility closed last quarter, provides the Company with the capital to advance the Nifty technical studies and finalise an appropriate development funding package next year. This will enable the delivery and execution of our strategy to restart the Nifty Project as a larger scale open pit copper operation.
