Copper producer Austral Resources Australia (ASX:AR1) has struck a major deal to acquire the Lady Loretta mining leases, associated exploration permits, and site infrastructure from Glencore AG, consolidating its position adjacent to the Lady Annie Copper Mine in North-West Queensland.
The transaction, valued at $45.5 million in net cash at completion, positions Austral to expand its copper feedstock for processing at its Mt Kelly plant.
The acquisition unlocks both short-term and longer-term opportunities, including a pit wall cutback from Lady Annie into the Lady Loretta lease and potential strike and down-plunge extensions of the Lady Annie copper mineralisation onto previously undeveloped Lady Loretta tenure.
The Lady Loretta mine, historically a high-grade zinc-lead producer, will cease zinc operations upon completion, allowing Austral to leverage existing infrastructure for copper development with minimal legacy or environmental liabilities.
Austral chairman David Newling described the deal as "strategically important" and said it consolidates tenure around Lady Annie while strengthening the company's balance sheet, which will reach approximately $65 million in unrestricted cash post-completion.
The acquisition completes the three pillars of Austral's North-West Queensland Copper Consolidation Strategy, laying the groundwork for the company’s ambition to become Australia’s next mid-tier copper producer.
Following completion, Austral plans near-mine drilling at Lady Annie to assess additional copper feed opportunities, with mining at the Lady Annie cutback expected to start in Q2 2026.
Technical studies and integration of the Lady Loretta tenure into existing geological models will support ongoing evaluation of the broader copper system.