Austral Resources has finalised its acquisition of Copper Resources Australia from Glencore.
This has seen the company acquire the Rocklands project, which consists of three mining leases, one exploration permit, and a processing plant used to produce copper concentrate from sulphide copper ore.
The company plans to centre its regional consolidation and growth strategy around the Rocklands project, which is located close to Austral’s eastern tenement base in northwest Queensland.
Rocklands complements Austral’s existing assets, particularly on the processing side, which will now be able to work with two distinct inputs (oxide at Lady Annie and sulphide at Rocklands).
Austral chairman David Newling said this strategic dual-processing footprint positions Austral to become an integrated and flexible copper producer in Queensland.
“Whilst Rocklands is not the only processing facility in the region, it is the only facility with excess capacity that can be utilised by third parties,” he said.
“We intend to utilise this capacity and the subsequent earnings to advance our own prospects in the region like Enterprise and Slaughterhouse Creek.”
Austral’s relationship with Glencore will continue beyond the acquisition. In fact, parts of the Rocklands deal involve ongoing contracts with the mining giant. These include an offtake agreement, tolling arrangements, and also a $US15 million loan facility.
Austral is also seeking to raise a further $40 million through a new placement of 800 million shares.
“The placement will provide Austral with an extended runway through key strategic milestones in unlocking the full potential of the Mount Isa and Cloncurry copper system,” Newling said.