Cyprium Gains Full Control of Paterson Copper Project as IGO Withdraws

Cyprium Metals (ASX:CYM,OTC Pink:CYPMF) said Wednesday (April 23) that it will assume 100 percent ownership of the Paterson exploration project following IGO's (ASX:IGO,OTC Pink:IPDGF) withdrawal from the joint venture.

The joint venture dates back to June 2020, when IGO signed a deal with Metals X (ASX:MLX,OTC Pink:MLXEF).

Under the arrangement, IGO committed to solely fund AU$32 million worth of exploration activities over the course of 6.5 years to earn a 70 percent interest in the project. IGO has managed the asset since then, investing approximately AU$24 million across multiple drill campaigns and regional targeting programs.

Cyprium went on to acquire Metals X's Western Australian copper assets in March 2021. Now that IGO has decided to exit the agreement with no retained interest, Paterson will revert back to Cyprium effective April 30.

The property is located in Western Australia's prolific Northeastern Pilbara region, and according to the company is contiguous with its Nifty copper complex and Maroochydore copper project.

"With strategic control of the ground and exploration process, Cyprium can extend the upside potential of our copper platform in the Paterson," commented Cyprium Executive Chair Matt Fifield.

He added that Nifty is able to process both oxide and sulphide ores via its two brownfield processing plants.

The company released a prefeasibility study for Nifty this past December, confirming the viability of large-scale copper-in-concentrate output at the site. The earliest projection for concentrate production at Nifty is in 2026.

When it comes to Paterson, Cyprium said its next step will be to absorb all the information generated by IGO over the years so that it can reintegrate this data with what it knows about Nifty and Maroochydore.

It will then go through a strategic review to keep the best interests of its stakeholders.

“We are excited to take the baton and build on (IGO's) work, unlocking the full potential of this exciting landholding," noted Fifield in the company's press release.

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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.