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.