Austral Resources Australia Ltd (ASX:AR1) has announced it has entered a binding agreement to acquire the Lady Loretta mining leases from Glencore. Austral Resources is focused on developing its copper assets and creating shareholder value. Alongside the acquisition, the company intends to fully repay the Rocklands Facility currently provided by Glencore, effectively becoming debt-free.
The acquisition of Lady Loretta and the subsequent debt repayment are subject to shareholder approval. A shareholder meeting is scheduled for March 2026 to approve the provision of a security interest in the Lady Loretta mine to Glencore, securing the Net Smelter Return (NSR) royalty for copper produced from the Lady Loretta Tenements. Austral Resources is under no contractual obligation to repay the Rocklands Facility prior to its maturity date.
Upon completion of the Lady Loretta acquisition, Noranda Pacific, which owns and operates the Lady Loretta mine, will have approximately US$30.4 million (A$43.5 million) in unrestricted cash. Austral will pay Glencore a 2.5% Net Smelter Return royalty on all Copper Oxides and Copper Sulphides produced from the Tenements. The initial Glencore Facility was established in late 2025 to partially fund the acquisition of the company’s Rocklands Copper Project.
Following the completion of both the Lady Loretta acquisition and the Rocklands Facility repayment, Austral Resources will have approximately A$41.5 million in unrestricted cash. This move is expected to provide the company with enhanced financial flexibility to pursue its strategic objectives and explore further acquisition opportunities. The security over the Rocklands Facility in favour of Glencore will be released, granting Austral full financial control over the asset.
