16 February 2026 – Brisbane, Australia | Austral Resources Australia Ltd (ASX:AR1) (“Austral” or the “Company”) has announced that it has executed binding documentation to complete the acquisition of the Lady Loretta mining leases, associated Exploration Permits for Minerals (EPMs), and related site infrastructure and mining camp (Lady Loretta) from entities ultimately controlled by Glencore plc (“Glencore”).
Austral also announced its intention to repay the Rocklands Facility provided by Glencore in full upon shareholder approval and upon completion of the Lady Loretta acquisition, positioning the Company to become debt free.
The Company noted that there is no contractual obligation under the acquisition agreement or the Rocklands Facility to repay the outstanding amount prior to the maturity date. However, Austral has taken the opportunity to strengthen its balance sheet and believes the repayment will place the Company in an enviable financial position to progress its current strategy and pursue further acquisition opportunities.
Austral stated it intends to utilise the acquisition funds to repay the remaining balance of the Rocklands Facility, being approximately A$21.5 million. Following repayment, security over the Rocklands Facility in favour of Glencore will be released, providing Austral with full financial flexibility over the Rocklands asset moving forward.
The Glencore Facility was initially established in late 2025 to provide cash consideration for the acquisition of the Company’s Rocklands Copper Project.
The Lady Loretta acquisition remains subject to shareholder approval and other regulatory conditions. Austral’s Board will convene a Shareholder Meeting in March 2026 to consider, amongst other items, approval of the provision of a security interest in the Lady Loretta mine to secure (in favour of Glencore) the Net Smelter Return (NSR) royalty for copper produced from the Lady Loretta tenements.
Under the terms of the acquisition agreement, Austral will acquire 100% of Noranda Pacific Pty Ltd (“Noranda Pacific”), the owner and operator of the Lady Loretta mine, associated EPMs, processing infrastructure and the camp for the mine.
If completed, US$40.0 million (A$57.1 million) will be available in Noranda Pacific’s bank account. An estimated US$9.6 million (A$13.7 million) is expected to be deducted from the payment to cash-back the current estimated rehabilitation bond for the Lady Loretta mine, increasing Austral’s unrestricted cash by approximately US$30.4 million (A$43.4 million).
Austral will also pay Glencore a 2.5% Net Smelter Return royalty on all Copper Oxides and Copper Sulphides produced from these tenements and will enter into an offtake agreement with Glencore for all copper products derived from the tenements.
On completion, Austral will assume the progressive rehabilitation obligations of the Lady Loretta mine.
Following completion of the Lady Loretta acquisition, Noranda Pacific is expected to hold approximately US$30.4 million (A$43.5 million) in unrestricted cash. After completion of the acquisition and repayment of the Rocklands Facility, Austral expects to have approximately A$41.5 million in unrestricted cash.
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