Austral Ditches Anthill Deal to Focus on Copper Strategy

Austral Resources Australia AR1 has announced its decision to withdraw from the Anthill project agreement (APA) with Glencore Australia and private company Secover. The APA gave Austral access to copper production, but the company will now focus on its own north-west Queensland copper strategy.

The withdrawal price is $51.98 million, comprising a cash payment of $37.6m and the issue of 159.8 million Austral shares equivalent to $14.38m. This settlement value approximates Austral's obligations under the APA at a discount to the current estimated value of ore to be processed from the Anthill copper deposit based on current prices.

Austral will immediately access its own copper production and the opportunity to increase production at the Mt Kelly processing plant from its Mt Clarke/Flying Horse and Lady Annie cutback operations. The company's non-executive chair, David Newling, said that extinguishing the APA would add immediate operational clarity and potential value.