Austral Resources Australia (ASX: AR1) has entered into an agreement with Glencore AG to acquire the Lady Loretta mining leases, associated exploration permits, and site infrastructure.
The transaction consolidates tenure adjacent to Austral’s Lady Annie copper mine in north-west Queensland and provides a pathway to add additional copper feedstock to the company’s Mt Kelly processing plant through near-mine development opportunities.
Under the agreement, Glencore will pay Austral approximately A$45.5 million (US$30.4m) in net cash at completion, materially strengthening the company’s balance sheet.
The acquisition completes the three core pillars of Austral’s North-West Queensland copper consolidation strategy and supports its ambition to build a larger, multi-asset copper business.
Strategic Rationale for the Acquisition
The Lady Loretta tenure adjoins the Lady Annie Copper Mine, and removes historical lease boundary constraints that have limited pit expansion and near-mine exploration, with Austral planning to pursue a pit wall cutback at Lady Annie into the Lady Loretta mining lease to access known copper mineralisation.
Geological interpretation also suggests the Lady Annie copper mineralisation trend extends along strike and down-plunge onto the Lady Loretta tenure, which has not previously been developed for copper.
The company considers both opportunities capable of delivering short- to medium-term copper feed for processing at Mt Kelly.
“This is a strategically important transaction for Austral and is a highly attractive outcome for shareholders,” Austral chair David Newling said.
“With the three key pillars of our consolidation strategy now complete, our focus turns to disciplined execution advancing near-mine opportunities at Lady Annie, progressing Rocklands toward restart in 2027, and building a long-term, multi-asset copper business capability in North-West Queensland.”
Transaction Structure and Key Terms
Austral will acquire 100% of Noranda Pacific – the owner-operator of the Lady Loretta mine – from Glencore, with completion targeted for 31 January 2026.
Once completed, A$59.9m (US$40.0m) will be paid to Austral, with approximately A$14.4m (US$9.6m) deducted to cash-back the existing rehabilitation bond, resulting in net proceeds of about A$45.5m (US$30.4m).
Austral expects the net cash inflow to lift its unrestricted cash balance at completion to approximately $65m, or about $130m including restricted cash.
The strengthened balance sheet provides flexibility to advance near-mine development at Lady Annie, progress Rocklands toward a planned restart and pursue further consolidation opportunities.
Austral said the acquisition materially de-risks its growth strategy by combining financial strength with low-risk, infrastructure-backed copper development options.
Glencore will retain a 2.5% net smelter return royalty on copper produced from the tenements, with Austral to assume responsibility for operations and progressive rehabilitation at Lady Loretta following completion.
