Austral Resources Australia Ltd (ASX:AR1) has entered into an agreement with Glencore AG to acquire the Lady Loretta mining leases, associated exploration permits and site infrastructure, a strategic transaction that materially strengthens Austral’s copper growth pipeline and balance sheet.
The acquisition consolidates Austral’s tenure immediately adjacent to its Lady Annie Copper Mine in North West Queensland, unlocking near-term and longer-term opportunities to add copper feedstock to the Company’s Mt Kelly processing plant.
Under the transaction, Austral will acquire 100% of Noranda Pacific Pty Ltd, owner and operator of the Lady Loretta mine. At completion, Glencore will pay Austral US$40.0 million (A$59.9 million), with approximately US$9.6 million (A$14.4 million) applied to cash-back the existing rehabilitation bond. This results in a net cash inflow to Austral of approximately US$30.4 million (A$45.5 million), increasing unrestricted cash balances to approximately A$65 million at completion.
The Lady Loretta tenure adjoins the Lady Annie Copper Mine and removes historical lease boundary constraints that have limited pit expansion and systematic assessment of mineralisation beyond the existing mining lease. The acquisition provides a pathway for a pit wall cutback at Lady Annie into the Lady Loretta lease, as well as access to strike and down-plunge extensions of the Lady Annie copper system that have not previously been developed for copper.
Austral’s Chairman, David Newling, commented:
“This is a strategically important transaction for Austral and is a highly attractive outcome for shareholders. The Acquisition of Lady Loretta consolidates tenure around Lady Annie and provides both short-term ore feed through the cutback and longer-term ore feed through the mineralisation extension.
Importantly, the transaction is structured to significantly strengthen our balance sheet while preserving substantial development upside.
With the three key pillars of our consolidation strategy now complete, our focus turns to disciplined execution advancing near-mine opportunities at Lady Annie, progressing Rocklands toward restart in 2027, and building (including through M&A) a long-term, multi-asset copper business capability of producing around 50,000 tonnes per annum of copper metal in North-West Queensland.”
Lady Loretta is located approximately 150 kilometres north-west of Mount Isa and 16 kilometres north of the Lady Annie Copper Mine. The operation has historically produced high-grade zinc-lead ore, with mining scheduled to cease at completion of the acquisition. Austral will assume responsibility for the site following completion, including operations and progressive rehabilitation obligations. The asset has no major legacy or environmental liabilities and benefits from existing infrastructure that can be leveraged for future copper development.
Geological interpretation indicates that copper mineralisation at Lady Annie extends beyond historical pit limits and mining lease boundaries onto the Lady Loretta tenure. Multiple near-mine targets have been identified along strike and at depth, supporting Austral’s strategy to pursue low-risk, capital-efficient growth by leveraging existing infrastructure and processing capacity.
The acquisition completes the three key pillars of Austral’s North West Queensland copper consolidation strategy and strengthens the Company’s pathway toward becoming Australia’s next mid-tier copper producer, with the ability to process both copper oxides and sulphides in-region.
Completion of the transaction is scheduled for 31 January 2026, subject to customary conditions precedent including regulatory and shareholder approvals.
Bell Potter Securities Limited acted as corporate adviser to Austral in relation to the Lady Loretta acquisition.
This announcement has been authorised for release by the Board of Austral Resources Australia Ltd.
About us:
Contact details:
David Newling
Chairman
Level 9, 60 Edward Street
Brisbane QLD 4000
P: +61 7 3520 2500
Jane Morgan
Jane Morgan Management
Investor & Media Relations
[email protected]
