Austral Resources Australia Ltd (ASX:AR1) has announced it has received binding commitments to raise $40 million through a placement offer. The placement will involve the issue of approximately 800 million new shares at $0.05 per share to institutional and sophisticated investors. Austral Resources is focused on building Australia’s next mid-tier copper powerhouse through disciplined consolidation, low-cost production, and responsible growth across Queensland’s copper belt. The company is poised to unlock the full potential of the Mount Isa copper system through ownership of regional infrastructure.
The proceeds from the placement offer are earmarked for several key initiatives, including balance sheet recapitalisation, acquisition integration, exploration and resource development, and the Rocklands mine development. A portion of the funds will also be allocated to general working capital. Specifically, $21.5 million is allocated to balance sheet recapitalisation and acquisitions, $2.4 million for project expansion and resource development, $10.6 million for Rocklands project development and $5.5 million for working capital and transaction costs.
The placement offer is part of a broader transaction involving offers to Dragon Field International Limited (DFIL) and Thiess, which includes new shares at the Offer Price. Austral Resources has been suspended from trading on the ASX since 3 September 2023, and is working towards reinstatement. The company confirmed it is positioned to meet all ASX reinstatement conditions. Trading of AR1 shares is anticipated to resume approximately three days following the settlement of the offer, expected around 28 October 2025.
