Aeris Resources Ltd (ASX:AIS) has launched a fully underwritten $35.1 million equity raising to accelerate the exploration programs at the Tritton Copper Operations (100% Aeris) and the Torrens Joint Venture (70% Aeris).
The company will also use the funds to strengthen its financial position via the repayment of a significant proportion of outstanding senior debt.
The equity raising will include an institutional placement to raise about $8.4 million, and a 1 for 2.1 accelerated non-renounceable entitlement offer to raise about $26.7 million, both at 20 cents per share.
Aeris share price performance
Aeris executive chairman Andre Labuschagne said: “This is another significant milestone for the company.
“The equity raise will enable us to accelerate exploration activities at our Tritton Copper Operations, particularly at the Kurrajong Prospect, and at the exciting Torrens Project in South Australia, in which we hold a 70% interest.
“Further reducing our debt levels will also provide the company with a sound financial platform to pursue organic and M&A growth opportunities.”
READ: Aeris Resources marks June quarter as best in FY2018
Aeris achieved copper production for the June quarter of 7,592 tonnes, an 11% increase on the previous quarter and the best quarter for FY2018 at its Tritton Copper Operations in New South Wales.
For the year ended June 30, 2018, Aeris reported a net profit attributable to members of $55.3 million (a 266% increase on the prior year) and net cash inflows from operations of $50.5 million (165% increase on FY2017).
The improved financial result was supported by higher copper prices and higher copper production, resulting in a 40% increase in revenue compared to the prior period.
Multiple new targets for further exploration in FY2019
The company completed three major capital investment projects at Tritton in FY2018, each representing a strategic investment for the future:
• The Tritton Underground Mine ventilation shaft was commissioned in September 2017. This essential infrastructure ensures that production at Tritton can be maintained at more than one million tonnes per year as mining moves deeper;
• The Murrawombie Underground Mine, which provides a second source of ore to the 1.8 million tonnes per annum Tritton processing plant, attained full production levels during the year; and
• The geophysical survey portion of the two-year, $7.5 million greenfields exploration program which commenced in the first half of FY2017 was completed during the period under review.
The ongoing greenfields exploration program also identified a further 65 kilometres of geological
trend, and multiple new anomalies for further exploration in FY2019.
READ: Aeris Resources ready to drill massive Olympic Dam style target
Aeris has a 70% interest in the Torrens Copper Project in South Australia alongside Argonaut Resource NL (ASX:ARE).
Torrens is a coincident magnetic and gravity anomaly with a footprint considerably larger than that of the world-class Olympic Dam deposit.
The Torrens Joint Venture, with Aeris as manager, has committed to the stage 1 drill program, consisting of 8-10 drill holes focusing on priority drill targets.
Drilling is scheduled to commence before the end of calendar 2018.