Aeris Resources (ASX: AIS) has executed a Facility Agreement with Washington H. Soul Pattinson (WHSP) for a $60 million Guarantee Facility. This facility will provide long-term environmental bonding, replacing the existing ANZ facility. The agreement also extends the $50 million Term Facility (currently $40 million drawn) to August 2026, repayable at maturity. Existing second-ranking security granted to WHSP will become first-ranking security, under an ASX waiver.
Drawdown under the Guarantee Facility is subject to conditions precedent, including the execution of security documentation, repayment of the ANZ Contingent Instrument Facility, and customary closing conditions. Aeris was advised by BurnVoir Corporate Finance and HopgoodGanim Lawyers on the refinancing.
The ASX granted Aeris a waiver from Listing Rule 10.1, permitting the extension of security to secure obligations under the Guarantee Facility without shareholder approval. Conditions of the waiver include that the Security Interest is limited to funds due, discharged upon repayment, and assets sold to unrelated third parties on arm’s length terms if enforced. Any material variations to the financial accommodation terms require security holder approval.
Aeris chose WHSP for the Guarantee Facility following a competitive process, where WHSP’s proposal was deemed more commercially acceptable by independent board members. Key attractions were the three-year term, competitive rates, and no mandatory hedging, unlike other providers who required hedging of approximately 50% of copper and gold production. WHSP’s existing substantial shareholding and understanding of Aeris were also factors.
