Austral Ditches Anthill Project for Focused Copper Strategy

Austral Resources Australia (ASX: AR1) has withdrawn its interest in the Anthill project agreement (APA), opting instead to focus on its north-west Queensland copper strategy.

The company will receive a withdrawal price of $51.98 million, comprising a cash payment of $37.6m and the issue of 159.8 million Austral shares worth approximately $14.38m.

This settlement allows Austral to immediately access its own copper production and increase output at the Mt Kelly processing plant from its Mt Clarke/Flying Horse and Lady Annie cutback operations.

Austral non-executive chair David Newling said, 'This transaction is extremely positive and will provide our shareholders with direct exposure to the prevailing copper price, our own production profile, and the opportunity to increase production at Mt Kelly.'

The company remains fully funded through to the recommencement of operations at Rocklands in mid-2027 and continues to investigate options to increase its resource base.