Austral Resources (ASX:AR1) has agreed to terminate its Anthill Project agreement (APA) with Glencore (LSE:GLEN) and Secover for $51.98 million, gaining immediate control over its copper production.
The settlement comprises a $37.6 million cash payment and 159.83 million shares issued at $0.09 per share, equivalent to $14.38 million. The share price represents a 40% premium to the company’s 27 July closing price of $0.064.
Austral will immediately access its own copper production and increase output at Mt Kelly from current Mt Clarke/Flying Horse campaigns and Lady Annie cutback, including potential acceleration of the heap leach re-mine program.
The extinguishment adds immediate operational clarity and potential value to the company.
“Whilst we are extremely appreciative of the support both Glencore and the Springwood Group showed in entering into the APA, and for the duration of that arrangement, all parties agreed that the company would greatly benefit from having the ability to process its own copper and accelerate an increase to production from the current mining campaigns and heap leach remine at the Mt Kelly operating facility,” Non-executive Chair David Newling says.
The APA successfully achieved its original objective of supporting the company’s recapitalisation and revised strategy during the agreement period.
Austral Resources says the APA increasingly constrained operational flexibility, financial transparency, and shareholder value as Austral transitioned into a multi-asset copper producer.
Shares will be issued under the company’s 15% placement capacity, with completion expected by end-July 2026. The settlement is not subject to material conditions or approvals.
Write to JC Villarba at Mining.com.au
Images: Mining.com.au
