Peel Mining (ASX:PEX) announced a binding agreement to be acquired by Aeris Resources (ASX:AIS) via a scheme of arrangement.
The transaction, which values Peel at approximately $214 million, represents a significant 49.1% premium over its one-month volume-weighted average price.
Under the terms of the deal, Aeris will acquire 100% of Peel's issued shares, specifically targeting the high-grade South Cobar Copper Project, including the Mallee Bull and Wirlong deposits.
The deal is structured to provide Peel shareholders with a dual-benefit payout totaling $0.234 per share.
This includes 0.3363 Aeris shares for every Peel share held, alongside an "in-specie" distribution of shares in NewCo, a newly formed exploration entity.
NewCo will inherit Peel's remaining precious and base metal assets in the Cobar Basin, such as the Southern Nights complex, ensuring shareholders retain exposure to future exploration upside.
Upon completion, Peel shareholders will collectively own 20.5% of Aeris Resources.
The regional consolidation is designed to unlock operational synergies by integrating Peel's South Cobar assets with Aeris’ established Tritton processing infrastructure.
The Peel board has unanimously recommended the proposal, citing the immediate value realisation and the strategic logic of creating a dominant mid-tier copper and gold producer.
To support the transition, Peel has already entered an underwriting agreement for a $4 million IPO capital raising for NewCo, priced at $0.20 per share.
At the time of reporting, the share prices of Peel Mining and Aeris Resources were $0.18 and $0.50, respectively.