Aeris’s deal involves an $80 million cash payment and the issue of 1.4 million of its shares at 10.5 cents a share up to the value of $154 million.
Aeris last traded at 12 cents.
Aeris will fund the cash component through a $117 million equity raising which will include a placement and a 1 for 4.22 pro-rata, accelerated non-renounceable entitlement offer.
The deal will give WHSP a 30 per cent of Aeris and a seat on its board.
Round Oak’s assets include the Jaguar zinc and copper mine in WA, the Mt Colin copper mine and the Barbara deposit in Queensland.
Aeris executive chair Andre Labuschagne said the deal would transform the company into a mid-tier copper, gold and base metal producer.
“The Round Oak asset portfolio is an excellent fit for Aeris’s stated strategy to acquire advanced copper, base metal and gold assets in Australia that are strongly cash flow generative with attractive exploration upside,” he said.
Labuschagne said the inclusion of the Stockman copper-zinc project in Victoria would give Aeris a second long-life project.
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