Aurelia Metals unveils capital raising and new boss on same day
New South Wales focused explorer, developer and producer Aurelia Metals (ASX: AMI) has named Bryan Quinn as the company’s new managing director and chief executive officer, at the same time as it was unveiling a massive $140 million funding plan for its Federation project.
The highly-regarded Mr Quinn joins Aurelia with a wealth of experience, including a lengthy stint with BHP (ASX: BHP).
He was most recently in charge of OZ Minerals’ and its growth, strategy, exploration, sales and marketing businesses.
That followed more than 27 years with BHP, where he held a series of senior executive and operational roles, including a period as President Joint Ventures Americas and Africa and Global Chief Technical Functions.
Aurelia’s chairman, Peter Botten, highlighted the new managing director’s significant business improvement project delivery experience.
“This is an ideal background to help Aurelia deliver on its exciting development pathway for Federation and Great Cobar, whilst optimising value and performance of our existing assets.
“With the refreshed management team and a competitive and flexible financing package now in place, Aurelia is well positioned to deliver on its value-adding growth trajectory. This represents a pivot point for the company and we look forward to providing our shareholders with reliable value enhancement,” Mr Botten said.
Critical Federation funding
The announcement of Mr Quinn’s appointment followed news that Aurelia had secured a significant funding solution for the development of the rich zinc, lead and gold Federation Project – considered one of Australia’s highest-grade base metals developments.
The new capital injection includes ~$100 million of new senior secured financing facilities and a $40m fully underwritten equity raising.
The new funding will be focused on rejuvenating development of Federation with plans in place to remobilise the mining contractor during the June Quarter.
A portion of the funds will also be used to repay the company’s $9 million term loan and the bond facility will replace the existing $57m guarantee facility, releasing $46 million of restricted cash.
Federation go-ahead progressing
In early March, Aurelia was granted development consent from the New South Wales Department of Planning and Environment for the Federation Project.
At the time the company stated it was well progressed with its secondary approvals, which include management plans and the negotiation of Voluntary Planning Agreements with the Cobar Shire Council and Bogan Shire Council.
A recent Federation development update revealed significant improvements to mine planning and ore flows for treatment at Aurelia’s Cobar Basin processing facilities.
The project’s finances were also updated with a reduced capital cost estimate with the company leveraging the assets and infrastructure of its nearby Hera operation, recently placed on care and maintenance.
This led to improved project economics including a net present value of $354 million.