How Will Aeris Deploy $90M to Transform Its Copper Growth Story?
Aeris Resources has secured $80 million through an institutional placement and launched a $10 million share purchase plan, aiming to repay debt and accelerate key exploration projects.
- Completed $80 million placement at $0.45 per share
- Launched $10 million non-underwritten share purchase plan for existing shareholders
- Proceeds to repay $40 million WHSP loan facility and fund exploration
- Post-placement cash balance of $112 million before loan repayment
- Strong support from domestic and international institutional investors
Capital Raise Strengthens Balance Sheet
Aeris Resources Limited (ASX, AIS), a mid-tier Australian copper and gold producer, has successfully completed an $80 million institutional placement priced at $0.45 per share. This move was complemented by the launch of a $10 million non-underwritten share purchase plan (SPP) available to existing shareholders at the same price point. Together, these initiatives are expected to raise up to $90 million, significantly bolstering Aeris’s financial position.
The capital raising received robust backing from a mix of high-quality domestic and international institutional investors, reflecting confidence in Aeris’s growth strategy and operational outlook. With the placement shares set to be issued in early November, the company will hold a cash balance of approximately $112 million before repaying its WHSP loan facility.
Debt Repayment and Growth Funding
A key objective of the capital raise is the full repayment of the roughly $40 million WHSP loan facility, which will leave Aeris debt-free with an estimated $62 million in cash post-repayment. This deleveraging is expected to improve the company’s financial flexibility and reduce interest expenses, positioning Aeris well for future opportunities.
Beyond debt repayment, the proceeds will accelerate exploration and development across several of Aeris’s core assets. Targeted projects include additional drilling at the Golden Plateau and Southern Vein Field within the Cracow operation, early works to de-risk the Constellation development, and resource extension drilling at the Tritton mine. These initiatives underscore Aeris’s commitment to organic growth and resource expansion.
Share Purchase Plan Offers Participation to Existing Investors
The non-underwritten SPP invites eligible shareholders in Australia and New Zealand to subscribe for up to $30,000 worth of shares at the placement price, free of brokerage fees. While the SPP targets $10 million, Aeris retains discretion to accept oversubscriptions or scale back applications, depending on demand. The SPP is expected to close in early December, with results announced shortly thereafter.
Executive Chairman Andre Labuschagne highlighted the strategic importance of the capital raising, noting it will enable Aeris to accelerate its exploration agenda while maintaining a strong balance sheet. The company’s lean operating model and experienced management team are well positioned to capitalise on these investments.
Looking Ahead
With the placement and SPP underway, Aeris is set to enter a new phase of growth funded by a strengthened financial base. Investors will be watching closely for updates on the deployment of funds, progress on exploration results, and any further strategic moves in the competitive base metals sector.
Bottom Line?
Aeris’s $90 million capital raise clears the path for debt-free growth, but execution on exploration will be key to sustaining momentum.
Questions in the middle?
- Will the share purchase plan fully subscribe or face scaling back?
- How quickly will exploration results from funded projects translate into resource upgrades?
- Could Aeris pursue further acquisitions or partnerships with its strengthened balance sheet?
