Austral Resources Australia has announced the termination of its obligations under the Anthill Project Agreement (APA) with Glencore and Secover.
The Anthill Project is situated within the Lady Annie Project area in Queensland, Australia, approximately 45km from the Mt Kelly processing plant.
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The settlement, valued at A$51.98m ($36.36m), is expected to be finalised by the end of July 2026, with payment made partly in cash and partly in shares.
Under the terms of the agreement, Austral will pay A$37.6m in cash, subject to agreed adjustments, along with the issuance of 159,830,504 fully paid ordinary shares at A$0.09 per share, equating to A$14.38m.
These shares will be issued under the company’s existing placement capacity and the deal is not subject to significant conditions or approvals.
The company stated it would begin to utilise its own copper stock and seek to increase production immediately at Mt Kelly, leveraging ongoing mining campaigns at Mt Clarke, Flying Horse and Lady Annie, and potentially accelerating heap leach re-mining.
The extinguishment of the APA is described by the company as earnings and cash flow accretive for the remaining period needed to process the Anthill ore, with prospects to improve further if copper prices rise or if production starts sooner than projected.
Austral indicated that the settlement aligns with its current strategy and noted that, including cash required for a potential transaction involving Hammer Metals, it remains fully funded until operations recommence at Rocklands.
The original APA, established to support recapitalisation and revised strategy, had begun to limit operational flexibility and transparency.
Glencore and Secover have agreed to release Austral from current and future claims relating to the APA following completion of the settlement, except for certain carve-outs and ongoing obligations.
The company highlighted that the value of copper ore to be processed under current market conditions is estimated to exceed the settlement consideration.
