Peel Mining (ASX:PEX) is divesting its South Cobar Copper Project to Aeris Resources (ASX:AIS) for $214 million via a scheme of arrangement agreement.
Aeris will acquire 100% of issued shares of Peel through the agreement, with Peel’s remaining precious and base metal assets to be demerged into NewCo.
Peel shareholders will receive a consideration valued at $0.234 per share comprising 0.336 Aeris shares for each 4.6 Peel shares held, valued at $0.044 per share, and one NewCo share for every 4.6 Peel shares held at the same price.
The valuation represents a 46% premium to the closing share price on 11 February and a 174.8% premium to the capital raising price in September 2025.
By the completion of the scheme of arrangement, Peel shareholders will own 20.5% of Aeris, as well as 100% of NewCo.
Peel has also entered into an underwriting agreement in support of an initial public option for NewCo, raising funds at an issue price of $0.20 each.
Peel CEO Nick Woolrych says the combination of assets for Peel and Aeris represents a “compelling and logical consolidation within the Cobar Basin, providing a clear pathway to accelerate and de-risk the development of the South Cobar Copper Project”.
“I am excited to lead NewCo alongside the Peel management team, with a clear focus on unlocking the value of the Southern Nights Complex and the rest of our exceptional Cobar Basin portfolio, while also pursuing accretive growth opportunities globally at a very favourable time in the base and precious metals cycle,” Woolrych says.
Aeris Executive Chairman Andre Labuschagne says the transaction is a part of Aeris’ strategy to unlock value at Tritton.
“Peel’s South Cobar Copper Project is a logical source of ore for Tritton offering scope to extend mine life and transform our mining complex into a larger, and more resilient operation,” Labuschagne says.
“The transaction unlocks compelling value for both Aeris and Peel shareholders – a true ‘win-win’ outcome.
“We welcome Peel shareholders to become part of our larger, copper and gold company with strong, diversified cash flows, a robust balance sheet and enhanced market position.”
Aeris Resources is a base and precious metals producer, holding a copper dominant portfolio with two operating assets, numerous development projects, and exploration assets.
Write to Maddison Elliott at Mining.com.au
Images: Peel Mining
