AIC Mines says it has received strong support for a $55 million placement to go towards the expansion of its Eloise processing plant in North-West Queensland.

The copper-gold miner last week announced it had awarded GR Engineering Services a $77.6 million contract to expand the plant to 1.1Mtpa throughput capacity.

At the same time AIC Mines shared news of a $US40 million (about $61.6 million Australian) prepayment facility with Trafigura – linked to an offtake agreement for the Jericho mine – to fund the expansion.

The company said the $55 million placement provided funding to include oversized equipment in the Eloise plant expansion which allowed for a potential second stage upgrade to be completed quickly and cheaply as soon as the mining rate permited.

“This capital raising allows AIC Mines to fully commit to the expansion of the Eloise processing plant and development of the new Jericho copper mine,” AIC Mines managing director Aaron Colleran said.

“New shares have been preferentially placed to large long-term oriented resource investors with a number of important North American and British investors joining the register.

“We have also entered into a strategic investor agreement with Hawke’s Point, crystallising over 18 months of due diligence and relationship building.”

The asset management business subscribed for $5.0 million in new shares and has entered into a binding heads of agreement with AIC Mines. This provides a clear structure for potential future financial support of the company by Hawke’s Point.

AIC Mines is also planning to undertake a share purchase plan to raise up to $10 million.

Eloise, 60km south-east of Cloncurry, produces about 12,500tpa of copper in concentrate.

The plant expansion and development of a sister mine at Jericho, 4km south of Eloise, is set to take production above 20,000tpa copper in concentrate from FY28.

Plant construction is expected to start in October, placing the expansion on track for tie-in and commissioning in the December 2026 quarter.

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