Following its announcement to ASX on 20 March 2019, Aeris Resources has provided an update on its recent offer on Glencore’s CSA copper mine in Cobar, New South Wales.
Aeris Resources has confirmed that discussions with Glencore regarding the proposed acquisition are continuing, however no concluded agreement has yet been reached on the transaction, nor on the funding structure.
The current offer by Aeris comprises $US575m in mix of cash (approximately US$525m) and Aeris shares (approximately US$50m) plus a royalty payable to Glencore. Although funding for the offer has not been finalised, it has been proposed that the acquisition be funded through a combination of debt (between US$250m and US$300m), an equity capital raising (between US$185m and US$240m) and a silver stream (between US$35m to US$40m).
The final sizing of, and participants in, the relevant components of the raising are yet to be finalised. However, Aeris is in late stage discussions with major shareholder Special Portfolio Opportunity V Limited, a subsidiary of a fund managed by PAG, Orion Mine Finance and others. The equity component of the raising is being managed by RBC Capital Markets and Macquarie Capital.
“Aeris provides this information to ensure that Aeris shareholders are informed as to the current status of discussions around the offer, it is important to note that there is no guarantee that the potential acquisition will proceed,” said Aeris Resources in a statement.
“Additionally, in the event that a formal agreement for the potential acquisition is entered into, it will likely be subject to a number of conditions including required shareholder approval.
The Company will update the market if and when any formal agreement is entered into in relation to the proposed acquisition.”