Australian copper producer and explorer Austral Resources Australia Ltd (ASX: AR1) has secured binding commitments for a $40 million placement, positioning the company to complete its balance sheet recapitalisation, integrate recent acquisitions, and move towards re-quotation on the ASX.
The capital raise, comprising approximately 800 million new fully paid ordinary shares at $0.05 per share, attracted strong support from institutional and sophisticated investors.
Chairman David Newling said the successful placement marks a major milestone in Austral’s transformation: “This marks another critical step towards delivering on the company’s goal of building Australia’s next mid-tier copper powerhouse through disciplined consolidation, low-cost production, and responsible growth across Queensland’s world-class copper belt.
Chairman David Newling stated that the Placement Offer gives Austral the financial runway to achieve key strategic milestones in unlocking the full potential of the Mount Isa copper system, with the aim of delivering sustainable production of 50,000 tonnes of copper metal annually for more than two decades.
He added that the capital raise is crucial in enabling Austral to be re-quoted on the ASX and to begin the process of generating returns for shareholders.
The proceeds will be directed towards balance sheet recapitalisation and acquisition integration, exploration and resource development, the Rocklands Mine development, and general working capital needs.
Austral’s recent acquisitions of Rocklands and Lady Loretta, combined with this raise, provide a strong foundation to unlock the Mount Isa copper system through consolidated ownership of regional infrastructure.
Austral, which has been suspended from trading since September 2023, has been working closely with the ASX to satisfy all remaining reinstatement conditions.
Following completion of the offer, the company expects to meet these requirements and resume trading by 28 October 2025.
The placement was supported by joint lead managers Bell Potter Securities Limited and Shaw and Partners Limited.
Proceeds of $40 million will be allocated as follows: balance sheet recapitalisation and acquisitions ($21.5 million), project expansion and resource development ($2.4 million), Rocklands project development ($10.6 million), and working capital and transaction costs ($5.5 million).
