AIC Mines Secures A$55M for Eloise Plant Expansion and Jericho Development

Funding a Step Change in Production

AIC Mines Limited has unveiled a strategic equity raising initiative aimed at accelerating the expansion of its flagship Eloise Copper Mine and advancing the Jericho Copper Mine development. The company plans to raise approximately A$55 million through a two-tranche placement, complemented by a A$10 million share purchase plan for eligible shareholders. This capital injection is designed to fund the expansion of the Eloise processing plant from its current 725,000 tonnes per annum (ktpa) capacity to 1.1 million tonnes per annum (Mtpa), with infrastructure oversized to allow a potential future upgrade to 1.5 Mtpa.

The expansion is underpinned by a fixed-cost Engineering, Procurement and Construction (EPC) contract awarded to GR Engineering, valued at $77.6 million. This contract provides cost certainty and sets the stage for construction to commence in August 2025, targeting commissioning by the December 2026 quarter.

Robust Funding Mix and Strategic Partnerships

Alongside the equity raise, AIC Mines has secured a US$40 million prepayment facility with Trafigura, a long-term offtake partner, to support the plant expansion. This facility is notable for its lack of commodity hedging requirements and early repayment flexibility, reflecting a strong relationship between the parties. The funding package also includes existing cash reserves and anticipated free cashflow of approximately A$62 million from the current Eloise operations over the next 18 months, which will support the development of the Jericho mine and associated infrastructure.

Major shareholder FMR Investments Pty Ltd and certain company directors have expressed their intention to participate in the placement, signaling confidence in the company’s growth trajectory. The offer price for new shares is set at A$0.30, representing a discount to recent trading prices to incentivize participation.

Jericho Development and Production Outlook

The Jericho Copper Mine, located near Eloise, is progressing steadily with a 3-kilometre underground link drive currently halfway complete. The project is on track to reach first development ore by June 2026. Jericho’s mineral resources and ore reserves significantly bolster AIC Mines’ production profile, with combined resources supporting the expanded processing capacity.

Production guidance for FY25 anticipates exceeding 12,500 tonnes of copper and 5,000 ounces of gold in concentrate, with an all-in sustaining cost (AISC) of approximately A$5.25 per pound of copper. The expansion aims to increase copper production to 20,000 tonnes per annum, leveraging economies of scale to reduce operating costs.

Risks and Market Considerations

AIC Mines provides a comprehensive overview of risks inherent to its operations and the equity raise, including commodity price volatility, operational challenges, funding risks, and regulatory compliance. The equity raising is not underwritten, introducing some uncertainty regarding the total funds raised. Additionally, tranche two of the placement is conditional on shareholder approval expected in mid-August 2025.

Investors should also consider the geological uncertainties associated with inferred mineral resources included in production targets and the potential impact of market conditions on project economics. The company’s strategy to combine debt and equity funding aims to balance growth ambitions with financial prudence.