PERTH (miningweekly.com) – ASX-listed Cyprium Metals has signed a $35-million term sheet with Transamine SA over a copper cathode offtake secured prepayment facility.

The offtake prepayment facility is part of the A$240-million to A$260-million debt funding package that Cyprium is working on to finance the restart of the Nifty copper project, in the Pilbara. The debt funding is expected to include senior secured financing and secured offtake financing.

“We are very pleased to renew our association with Transamine SA, by entering into an exclusive term sheet for a copper cathode offtake secured prepayment facility. This is part of a fully funded finance package for the restart of the Nifty copper project,” said Cyprium MD Barry Cahill.

“The restart project economics remain very robust, and we have continued to make further improvements to the Nifty copper project during the financing process. As all of the required regulatory approvals able to be completed prior to finance have been received, we are looking forward to completing our total funding package so that we can commence executing our Nifty copper project restart development plans.”

The copper cathode prepayment facility will cover 100% of the copper cathode produced during Phase 1 of the Nifty project restart, which is expected to reach over 140 000 t, with offtake pricing to be determined by reference to average market rates.

The facility will have a 42-month term.

A previously completed restart study estimated that Cyprium would require a capital injection of some A$149-million to restart Nifty, allowing the project to produce some 25 000 t/y of copper cathode.

The restart is focused around the first phase of heap leach retreat and oxide open pit, and it is envisaged that the life will extend to the sulphide stage of the open pit with a considerably larger resource available.