Aeris Resources to Acquire Peel Mining, Extend Tritton Mine Life

Key Highlights

• Aeris to acquire Peel Mining and South Cobar assets to expand Tritton operations
• Combined resources expected to reach ~29.5Mt at 1.73% copper
• Peel shareholders to own about 20.5% of the enlarged group
• Demerger of remaining Peel assets into NewCo preserves exploration upside
  
   

Aeris Resources has moved to significantly strengthen its position in the Cobar Basin with a proposed acquisition of Peel Mining and the nearby South Cobar project, a transaction designed to extend the operational life of the Tritton copper complex and unlock regional synergies.

The acquisition brings the Mallee Bull and Wirlong deposits into Aeris’ portfolio, both located within haulage distance of the Tritton processing facility. This proximity is expected to reduce capital expenditure requirements while improving operational efficiency by leveraging existing infrastructure.

Aeris executive chair Andre Labuschagne described the move as strategically aligned with the company’s long-term growth strategy, stating:

“The South Cobar copper project is a logical source of ore for Tritton offering scope to extend mine life and transform our mining complex into a larger and more resilient operation.”

Combined Resources Strengthen Copper Outlook

Following completion of the transaction, the combined resource base across Tritton and South Cobar is expected to reach approximately 29.5 million tonnes at an average grade of 1.73% copper, containing around 511,000 tonnes of copper metal.

The Mallee Bull and Wirlong deposits alone contribute an estimated 10.6Mt at 1.85% copper for about 197,000 tonnes of contained copper, providing a strong pipeline of future feed for Tritton’s 1.8Mtpa processing plant. The integration is expected to optimise mine scheduling, enhance operational efficiencies, and reduce the need for new processing infrastructure, helping lower overall development risk.

Aeris is currently advancing integration studies to optimise the combined mining schedule and expects to establish a maiden ore reserve for the integrated operation within six months of completion.

Demerger Creates NewCo for Remaining Assets

As part of the transaction structure, Peel Mining will demerge its remaining base and precious metals exploration assets into a new listed company, referred to as NewCo. The new entity will undertake a $4 million public offering ahead of an ASX listing, allowing Peel shareholders to retain exposure to exploration upside.

The demerged portfolio will include the Southern Nights Complex, the May Day deposit, and the Nombinnie prospect, providing continued exposure to zinc, gold, and silver exploration opportunities. Peel shareholders will receive one NewCo share for every 4.6 Peel shares held.

Peel managing director Nick Woolrych said the structure ensures shareholders benefit from both immediate value and long-term upside, noting:

“Our shareholders will receive immediate value at an attractive premium and benefit from the market re-rating expected to flow from the creation of a larger base and precious metals producer with increased mine life and an enhanced production profile.”

Source: Company announcements

Financial Structure and Shareholder Ownership

Under the proposed acquisition terms, Aeris will issue 0.3363 Aeris shares for each Peel share, valuing Peel at approximately $0.234 per share and representing a significant premium to recent trading levels. Upon completion, Peel shareholders are expected to hold about 20.5% of the enlarged group.

The combined entity is projected to have a pro-forma market capitalisation of approximately $851 million, supported by an estimated $106 million in cash and concentrate receivables and no debt, strengthening the balance sheet ahead of development activities.

Building a Larger Cobar Basin Mining Hub

Strategically, the transaction represents a consolidation of key assets within the Cobar Basin, enabling Aeris to develop a larger, integrated mining hub centred around Tritton. By utilising existing processing infrastructure and experienced operational teams, the company aims to fast-track development timelines while reducing capital intensity.

Further exploration drilling at Wirlong is also planned, targeting additional resource growth that could provide long-term feed for Tritton and support sustained production expansion.

Outlook

If approved by shareholders, the acquisition is expected to significantly extend Tritton’s operational life beyond its current outlook while enhancing production visibility and strengthening Aeris’ position as a growing copper producer. For Peel shareholders, the transaction offers exposure to a larger diversified mining group while retaining exploration leverage through NewCo, creating what both companies describe as a mutually beneficial consolidation within the Cobar Basin.