- Austral Resources Australia (AR1) debut yesterday after raising $30 million
- Shares fell as much as 25 per cent to 15 cents after a 20-cent debut amid potential legal action, before finishing of the day at 17.5 cents
- The funds will be used to develop Austral’s Anthill Mine near Mt Isa in Queensland, explore for copper and retire debt, among other objectives
- Austral is targeting 10,000 tonnes per year of copper cathode production for four years from mid next year
- Shares in Austral Resources Australia are up 5.71 per cent to $0.18 as of 1:04 pm AEDT
Austral Resources Australia (AR1) began trading on the ASX yesterday after a $30 million IPO.
Shares fell as much as 25 per cent to 15 cents after a 20-cent debut amid potential legal action, before finishing of the day at 17.5 cents. During mid-day trading shares are up to 19 cents.
Media speculation pointed towards Nathan Tinkler seeking to “reclaim” a shareholding interest in Austral from executive director Dan Jauncey’s interests and his associated interests, of which the copper-focused explorer may be subject to legal action.
Austral confirmed in a statement it had received correspondence from Mr Tinkler’s solicitors threatening legal action.
The company has refuted all claims made by the solicitors and have not been served with any notice of proceedings and have pledged to defend its position should action be initiated.
According to the company, amongst the investors in the IPO were offshore and local funds, as well as high net worth individuals.
Austral CEO Steven Tambanis said the focus was to get Anthill into production of copper cathode at 10,000tpa for the next four years.
“This is an exciting time for the company and its investors to participate as a copper producer with its fully permitted new mine, Anthill, and established infrastructure,” he said.
“Free cashflow from copper production will fund exploration and development activities with the intention of extending mine life and to further grow the company. We have a lot of work in the pipeline.”
Austral Executive Director Dan Jauncey said it had taken two years to get the project evaluated, prepared and permitted.
“I’d like to thank Austral’s investors for participating in what we believe is an outstanding copper project with the key elements of a successful business: Copper cathode production, expanding production near term, a buoyant copper price and highly-prospective exploration and development upside,” he said.
Shares in Austral Resources Australia are up 5.71 per cent to $0.18 as of 1:04 pm AEDT.