Brisbane, Australia – Australian copper producer and explorer Austral Resources Australia Ltd (ASX: AR1) (“Austral” or the “Company”) has secured binding commitments for a $40 million placement that positions the Company to complete its balance sheet recapitalisation, integrate recent acquisitions, and move towards re-quotation on the ASX.
The capital raise, comprising approximately 800 million new fully paid ordinary shares at $0.05 per share, drew strong support from institutional and sophisticated investors.
Chairman David Newling said the successful placement marks a major milestone in Austral’s transformation:
“This marks another critical step towards delivering on the Company’s goal of building Australia’s next mid-tier copper powerhouse through disciplined consolidation, low-cost production, and responsible growth across Queensland’s world-class copper belt.
The Placement Offer provides Austral with an extended runway through key strategic milestones in unlocking the full of potential of the Mount Isa copper system, targeting sustainable production of 50,000 tonnes of copper metal per year for over 20 years. Importantly, it paves the way for Austral to be re-quoted on the ASX and for it to begin the journey of generating returns for shareholders.”
Strengthened Platform for Growth
Proceeds will be directed towards balance sheet recapitalisation and acquisition integration, exploration and resource development, the Rocklands Mine development, and general working capital. Austral’s recent acquisitions of Rocklands and Lady Loretta, combined with this raise, provide a strong foundation to unlock the Mount Isa copper system through consolidated ownership of regional infrastructure.
ASX Re-quotation on Track
Austral has been suspended from trading since September 2023 and has been working closely with the ASX to satisfy all remaining reinstatement conditions. Following completion of the offer, Austral expects to meet these requirements and resume trading by 28 October 2025.
Placement Details
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Amount raised: A$40 million
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Issue price: A$0.05 per share
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New shares: Approximately 800 million
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Joint lead managers: Bell Potter Securities Limited and Shaw and Partners Limited
Funds will be allocated as follows:
For more information, please visit https://www.australres.com
ENDS
About us:
About Austral Resources Australia
Austral Resources Australia Ltd (ASX:AR1) is a copper cathode producer operating in the Mt Isa region, Queensland, Australia. Its Mt Kelly copper oxide heap leach and solvent extraction electrowinning (SX-EW) plant has a nameplate capacity of 30,000tpa of copper cathode. Austral has developed its Anthill oxide copper mine, which has an Ore Reserve Estimate (ORE) of 2.87Mt at 0.94% Cu (comprising of 0.90Mt at 0.90% Cu proved ORE and 1.97Mt at 0.96% Cu Probable ORE). The Company has been producing copper cathode from mid-2022.
Austral also owns a significant copper inventory with a JORC-compliant Mineral Resource Estimate of 53.74Mt@ 0.74% Cu (comprising of 9.39Mt at 0.75% Cu Measured MRE, 33.03Mt at 0.76% Cu Indicated MRE and 11.32Mt at 0.67% Cu Inferred MRE) and 2,100km2 of highly prospective exploration tenure in the heart of the Mt Isa district, a world-class copper and base metals province. The Company is implementing an intensive exploration and development program designed to extend the life of mine, increase its resource base, and then review options to commercialise its copper resources.
Contact details:
Jane Morgan
Investor and Media Relations
M +61 405 555 618
E [email protected]