Major mining power Glencore is backing Austral Resources’ acquisition of Rocklands mine owner Copper Resources Australia (CRA) with offtake, tolling and funding deals.

They include a $US15 million (about $23 million) loan facility for the purposes of acquiring CRA.

Austral Group is also granting Glencore tolling capacity in the Rocklands plant (pictured above), which it said was expected to be recommissioned in mid-2027.

And the companies have entered an offtake agreement under which Glencore has agreed to purchase 100 per cent of any copper concentrate derived from any tenement of the Austral group.

Austral is a producing miner in North-West Queensland and already has an offtake agreement in place for Glencore to take copper cathode from its Mount Kelly processing facility.

Related: Austral beefs up board to pursue growth strategy

“The company’s relationship with Glencore goes from strength to strength,” Austral chairman David Newling said.

“Whilst the offtake agreement ensures we have a ready customer for copper concentrate from the Rocklands facility, the tolling agreement is where we see real value for the company.

“Whilst Rocklands is not the only processing facility in the region, it is the only facility with excess capacity that can be utilised by third parties.

“We intend to utilise this capacity and the subsequent earnings to advance our own prospects in the region, like Enterprise and Slaughterhouse Creek.”

Related: Maronan looks to Rocklands for toll treatment

The Rocklands copper mine, 20km west-northwest of Cloncurry, has been on care and maintenance since late 2024 when Copper Resources Australia went into administration.

News of the binding agreements with Glencore follows Austral’s announcement in July of a deal to acquire CRA.

Share placement to raise $40m for Austral Resources ‘reset’

Austral this morning also announced a share placement to raise about $40 million at $0.05 per share.

Proceeds will be used to fund acquisition integration, exploration and resource development, Rocklands mine development, balance sheet recapitalisation and working capital.

A prospectus for the placement has been lodged with ASIC and the ASX.

“Today is a big milestone for the revitalised Austral Resources,” Mr Newling said.

“The lodgement of the prospectus is the culmination of a significant amount of work that marks another critical step towards delivering on the company’s goal of building Australia’s next mid-tier copper powerhouse through disciplined consolidation, low-cost production, and responsible growth across Queensland’s world-class copper belt.

“The placement will provide Austral with an extended runway through key strategic milestones in unlocking the full of potential of the Mount Isa and Cloncurry copper system, targeting sustainable production of 50,000 tonnes of copper metal per year for over 20 years.”

It is anticipated that the company will receive an extension to its trading suspension period from the ASX.

Austral has now finalised agreements that deliver:

• Settlement of all debts owed to Thiess through a mix of cash and equity, leaving Thiess with an anticipated 17 per cent shareholding in the company.
• Conversion of up to $2 million in equipment-related debt owed to AES into equity.
• Formal execution of the Anthill Project Agreement alongside Glencore and Secover.
• A pathway to complete the Rocklands acquisition, supported by Glencore through tolling, offtake, and loan agreements.

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