Austral Resources Australia Ltd (ASX:AR1) has announced it has received binding commitments for a $65 million placement, led by the QIC Critical Minerals and Battery Technology Fund. Austral Resources is a copper producer and explorer, with a portfolio of advanced assets in the Mt Isa region of Queensland. The company is focused on developing its existing resource base and expanding its production capacity.
The placement, priced at $0.09 per share, has garnered substantial support from both new and existing institutional investors, both domestically and internationally. The QIC Critical Minerals and Battery Technology Fund has committed $15 million to the placement. Eligible existing shareholders will also have the opportunity to participate in a non-underwritten Share Purchase Plan (SPP) targeting $5 million, offered at the same price as the placement.
The proceeds from the placement are earmarked for accelerating copper production and enhancing production capabilities at the Rocklands and Mt Kelly sites. Additionally, the funds will support exploration activities at the Lady Annie pit extension and provide general working capital. Upon completion of the Lady Loretta acquisition and the placement, Austral Resources anticipates being debt-free with approximately $97 million in cash on hand.
Austral’s Chairman, David Newling, expressed gratitude for the support from QIC and the Queensland Government, emphasizing the company’s commitment to the Mt Isa/Cloncurry region and its local communities. He also noted the strong investor support for the placement, highlighting a significant transition point for the company as it becomes strongly funded to pursue exploration and development across its copper portfolio.
