Aeris Resources will accelerate exploration at the Tritton copper and Cracow gold operations in New South Wales and Queensland, respectively, after raising $50.4 million.
The company’s forecast for financial year 2021 expected Tritton to produce up to 23,500 tonnes of copper, while Cracow should see up to 75,000 ounces of gold
Of the placement, $28 million will go towards exploration activities across both operations while $19.9 million will bolster Aeris’ general working capital. The remaining $2.5 million will cover transaction costs.
Aeris executive chairman Andrew Labuschagne said the great success of the placement showed the strength of the company’s strategy in copper and gold.
“This is an exceptional outcome for Aeris and its shareholders and provides the balance sheet strength to accelerate exploration at both our operations in financial year 2022 (FY22), while progressing in parallel, life extension projects at Tritton,” Labsuchagne said.
Aeris will also advance its Budgerygar desposit, 600 metres from Tritton, as well as its untouched Avoca Tank and Murrawombie deposits.
“In FY22 we will continue development of the Budgerygar underground mine. We are also finalising plans to commence development of Avoca Tank (underground) and a cut-back of the open pit at Murrawombie,” Labuschagne said.
“We acknowledge the support of our current and new shareholders, and completion of the placement ensures that FY22 will be both a busy and exciting year for Aeris.”
Joint lead managers on the placement were Bell Potter Securities and Euroz Hartleys.
Approximately 287 million shares will be issued at $0.175 per share.
The Aeris share price at time of writing was $0.215 per share.