AIC Mines has secured overwhelming shareholder support for its proposed acquisition of the Mt Cuthbert copper project in Queensland, clearing a key hurdle in its plans to establish a second production centre alongside Eloise.
At an extraordinary general meeting on November 4, shareholders approved the issue of shares to acquire Materra Metals, which owns Mt Cuthbert, and a $70 million placement to Hawke’s Point Resource Finance and its affiliates.
Both resolutions passed with more than 99 per cent of votes cast in favour, satisfying the shareholder approval requirements for the transaction.
The placement will fund the $20 million cash component of the acquisition and support accelerated exploration, resource drilling and development studies at Mt Cuthbert.
Located approximately 150km northwest of AIC’s Eloise operation, Mt Cuthbert contains an initial mineral resource of 18.7 million tonnes grading 1.3 per cent copper, equivalent to approximately 246,000 tonnes of contained copper.
AIC chairman Aaron Colleran said the project represented an opportunity to establish another copper production hub in northwest Queensland.
“Mt Cuthbert is an excellent strategic fit for AIC Mines. Located approximately 150 kilometres northwest of our Eloise operation, it provides a potential second production centre in northwest Queensland,” he said.
Around three-quarters of the resource is sulphide material, with AIC planning approximately 60,000m of diamond drilling over the next two years to better define the mineralised systems and inform development studies and permitting applications.
The company is assessing the potential for a standalone operation producing copper concentrate, similar to Eloise.
The shareholder approval comes as AIC advances its existing copper operations, with construction of the Eloise processing plant expansion now complete and ore commissioning underway.
First ore has entered the new ball mill, while the crushing and concentrate filtration circuits are operational. Ramp-up and performance testing are expected to continue through the December quarter.
Ore production from the nearby Jericho mine is also ahead of schedule, with the expanded Eloise plant targeting nameplate throughput of 1.1 million tonnes per annum by January 1, 2027.
Colleran said the company’s recent development experience would be relevant to its plans for Mt Cuthbert.
“Importantly, the experience we have gained developing the Jericho copper mine and expanding the Eloise processing plant will be very valuable and relevant at Mt Cuthbert,” he said.