Aeris Resources has secured $80 million via an institutional placement and launched a $10 million share purchase plan (SPP) to reduce debt and fund growth projects.
The placement, priced at $0.45 per share, drew strong support, with around 177.8 million new fully paid ordinary shares to be issued, representing a 13.5 per cent discount to Aeris’s last closing price of $0.52.
“This inbound-led placement received strong support from high-quality institutional investors, both in Australia and offshore,” Aeris Resources executive chair Andre Labuschagne said.
“The capital raise allows us to deleverage our balance sheet and accelerate exploration and growth initiatives across the group.
“Post-completion of the transaction, Aeris will repay the loan facility to WHSP, leaving the company with $62 million of cash and no debt on the balance sheet. Any further funds received from the SPP will be applied to general working capital.”
Together, the placement and SPP are expected to raise around $90 million, with proceeds earmarked for:
- Full repayment of the $40 million WHSP loan facility and fees
- Additional exploration at Golden Plateau and Southern Vein Field at Cracow
- Early works at Constellation to de-risk development
- Resource extension drilling at Tritton
- Working capital and offer costs
Settlement of the placement is scheduled for November 5, with new shares issued the following day. Bell Potter Securities and Ord Minnett acted as joint lead managers, with Morgans Corporate as co-manager.
In other recent news at the company, it produced 10,300 tonnes of copper equivalent across both the Tritton and Cracow operations over the September quarter.
According to the company’s quarterly activities report, the Tritton operation accounted for 6100 tonnes of copper production, at an all-in sustaining cost of $4.24 per pound. This was consistent with its performance in the previous quarter.
Underground production (predominantly from Avoca Tank and Budgerygar) was consistent with previously laid out plans, although grades were lower due to a change in the mining sequence.
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