Austral Successfully Completes $17 million Placement
Brisbane, Aug 11, 2022 AEST (ABN Newswire) - Copper producer Austral Resources Australia Ltd (ASX:AR1) is pleased to announce that it has received firm commitments to raise A$17 million in an institutional placement of approximately 45.9 million shares ("New Shares") at an issue price of A$0.37 per share ("Placement").
Under the Placement, Dan Jauncey, Managing Director and CEO, will subscribe for A$1 million worth of New Shares, subject to shareholder approval at a general meeting of the Company.
Petra Capital acted as Sole Lead Manager and Bookrunner to the Placement.
The placement was strongly supported by institutional and sophisticated investors, providing significant endorsement of Austral's ongoing progress.
Austral's Managing Director and CEO, Dan Jauncey, commented:
"We are delighted with the support for the placement and welcome a number of new institutional investors to the register.
Austral would like to thank our existing shareholders for the continued support and we look forward to delivering on our strategy."
New Shares will be issued under the Placement at an issue price of A$0.37 per share, which represents:
- 17.8% discount to the last traded price of A$0.45 per share on 9 August 2022; and
- 16.2% discount to the 5-day volume weighted average price ("VWAP") of A$0.441 per share at close on 9 August 2022.
Under the Placement 43,243,244 New Shares will be issued under the Company's existing Listing Rule 7.1A capacity, raising approximately A$16 million. In addition, Dan Jauncey, Managing Director and CEO, will subscribe for 2,702,703 shares, A$1 million, subject to shareholder approval at a general meeting of the Company.
About Austral Resources Australia Ltd
Austral Resources Australia Ltd (ASX:AR1) is a copper cathode producer operating in the Mt Isa region, Queensland, Australia. Its Mt Kelly copper oxide heap leach and solvent extraction/electrowinning (SXEW) plant has a nameplate capacity of 30,000tpa of copper cathode. Austral is developing its Anthill oxide copper mine which has an Ore Reserve of 5.06Mt at 0.94% Cu. The Company expects to produce 40,000t of copper cathode over a four-year period from mid-2022.
Austral owns a significant copper inventory with a JORC compliant Mineral Resource Estimate of 60Mt at 0.7% Cu and 1,940km2 of highly prospective exploration tenure in the heart of the Mt Isa district, a world class copper and base metals province. The Company is implementing an intensive exploration and development programme designed to extend the life of mine and increase then review options to commercialise its copper resources.
Austral Resources Australia Ltd