Copper Producer Successfully Lists Raising $30m
Brisbane, Nov 8, 2021 AEST (ABN Newswire) - Shares in copper producer, Austral Resources Australia Ltd (
ASX:AR1) have commenced trading on the ASX following the completion of its $30m Initial Public Offer ("IPO"). At the Offer Price the Company will have a market capitalisation of $89m. The IPO had very strong support from the Australian public, offshore funds, local Funds and High Net Worth investors.
Highlights:
- Austral Resources Australia Ltd successfully listed on the ASX on 3rd November 2021. Capital raising was oversubscribed, $30m placement completed.
- Funds raised will be applied to develop Austral's new Anthill Mine, prepare its Mt Kelly processing plant for ore deliveries Q1 2022, commence exploration and retire debt.
- Qld Government environmental approval now permits commencement of earth moving at Anthill project.
- Austral is targeting 10,000tpa of copper cathode production for four years from mid 2022.
- Exploration targets being prioritised for copper oxide and sulphide resources. Sulphide resource evaluation underway at existing pits.
Austral's Chief Executive Officer Steven Tambanis said:
"This is an exciting time for the Company and its investors to participate as a copper producer with its fully permitted new mine, Anthill, and established infrastructure.
Our immediate focus is to get Anthill into production and commence copper cathode production at 10,000 tonnes per annum for the next four years.
Free cashflow from copper production will fund exploration and development activities with the intention of extending mine life and to further grow the Company. We have a lot of work in the pipeline."
Dan Jauncey, Executive Director said:
"On behalf of the Board and Company employees, I'd like to thank Austral's investors for participating in what we believe is an outstanding copper project with the key elements of a successful business: copper cathode production, expanding production near term, a buoyant copper price and highly prospective exploration and development upside.
We are committed to delivering a safe and timely start of Anthill operations and look forward to updating investors as we progress to full production.
I also want to acknowledge the excellent efforts by staff and contractors over the past two years to get this project evaluated, prepared, and permitted. Thank you all for a great effort to get us here."
About Austral Resources Australia Ltd
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 (SXEW) plant has a nameplate capacity of 30,000tpa of copper cathode. Austral is developing its Anthill oxide copper mine which has an Ore Reserve of 5.06Mt at 0.94% Cu. The Company expects to produce 40,000t of copper cathode over a four-year period from mid-2022.
Austral owns a significant copper inventory with a JORC compliant Mineral Resource Estimate of 60Mt at 0.7% Cu and 1,940km2 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 programme designed to extend the life of mine and increase then review options to commercialise its copper resources.
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