Aurelia Metals acquires 100% interest in Peak Mines

Company News

by Kathy Skantzos

Aurelia Metals (ASX:AMI) has entered into an agreement with Toronto-listed mining company New Gold to acquire a 100 per cent interest in its Peak Mines operation in New South Wales for US$58 million.

Aurelia has identified the total funding requirement to complete the transaction, including transaction costs, will be approximately AU$140 million, with funding provided through underwritten debt facilities and a $70 million capital raising.

The acquisition includes two operating mines and processing facilities and two advanced development projects.

The deal increases the diversity of the miner’s commodities to include production of gold, silver, copper, lead and zinc, as well as increase its exploration acreage.

Aurelia’s Managing Director and CEO Jim Simpson said the acquisition is an ideal growth asset for Aurelia, delivering a step-change in the company’s production, cash generation and reserves, and transforms the company from a single mine operation.

Shares in Aurelia Metals (ASX:AMI) are on a trading halt and last traded at 24 cents.

Kathy Skantzos

Finance News Network
Kathy presents the Market Outlook and ASX company news. She joined FNN in September 2017. She has been in print and online journalism for over 9 years. She also worked in corporate communications.