Austral Resources Reset Gathers Momentum with $40M Equity Raising and Debt Settlements

Jane Morgan Management

Brisbane, Australia – Australian copper producer and explorer Austral Resources Australia Ltd (ASX: AR1) (“Austral” or the “Company”) has taken a major step forward in its corporate reset, announcing the execution of all required legal agreements and the lodgement of a Prospectus with ASIC and ASX to facilitate a $40 million equity raising.

The Placement, priced at $0.05 per share, will fund acquisition integration, exploration and resource development, Rocklands mine development, balance sheet recapitalisation, and working capital requirements. Shareholder approval for the issuance of securities is expected to be secured at a meeting on 4 September 2025.

Austral has now finalised agreements that deliver:

• Settlement of all debts owed to Thiess Pty Ltd through a mix of cash and equity, leaving Thiess with an anticipated 17% shareholding in the Company.
  
  

• Conversion of up to $2 million in equipment-related debt owed to AES into equity.
  
  

• Formal execution of the Anthill Project Agreement (APA) alongside Glencore and Secover.
  
  

• A pathway to complete the Rocklands acquisition, supported by Glencore through tolling, offtake, and loan agreements.

Chairman David Newling said the developments represent a turning point for the Company:

“Today is a big milestone for the revitalised Austral Resources. The lodgement of the Prospectus is the culmination of a significant amount of work that 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.

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, targeting sustainable production of 50,000 tonnes of copper metal per year for over 20 years.”

The Placement, jointly managed by Bell Potter Securities and Shaw and Partners, comprises the issue of approximately 800 million shares. Funds raised will support debt settlements, resource growth initiatives, and the development of Rocklands as a cornerstone asset in Austral’s regional hub-and-spoke model.

Subject to shareholder approval and ASX conditions, Austral expects reinstatement of its shares to trading on the ASX in October 2025.


For more information, please visit https://www.australres.com

About Austral Resources Australia
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 (SX-EW) plant has a nameplate capacity of 30,000tpa of copper cathode. Austral has developed its Anthill oxide copper mine, which has an Ore Reserve Estimate (ORE) of 2.87Mt at 0.94% Cu (comprising of 0.90Mt at 0.90% Cu proved ORE and 1.97Mt at 0.96% Cu Probable ORE). The Company has been producing copper cathode from mid-2022.

Austral also owns a significant copper inventory with a JORC-compliant Mineral Resource Estimate of 53.74Mt@ 0.74% Cu (comprising of 9.39Mt at 0.75% Cu Measured MRE, 33.03Mt at 0.76% Cu Indicated MRE and 11.32Mt at 0.67% Cu Inferred MRE) and 2,100km2 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 program designed to extend the life of mine, increase its resource base, and then review options to commercialise its copper resources.

Jane Morgan
Investor and Media Relations
M +61 405 555 618
E [email protected]