Aeris Resources Ltd (ASX:AIS) has revealed that it is in discussions with Glencore PLC (LON:GLEN) to acquire the CSA underground copper mine in central-west New South Wales.
An offer has been made and late-stage negotiations around the offer and associated documents are ongoing but are yet to be finalised.
Aeris said, broadly, the offer comprised $US525 million cash and US$50 million Aeris shares plus a royalty payable to Glencore.
Funding is not yet finalised but it proposed to be a combination of US$250-300 million debt, US$185-240 million equity, and a silver stream of between US$35-40 million.
No guarantee acquisition will proceed
Aeris noted that it is important to note that there is no guarantee that the potential acquisition will proceed.
Additionally, in the event that a formal agreement for the potential acquisition is entered into, it will likely be subject to a number of conditions including required shareholder approval.
READ: Aeris Resources is a copper producer with multiple growth opportunities
Aeris is already a copper producer through its Tritton Copper Operation, also located in central-west New South Wales.
The company also has a number of brownfields and greenfields exploration projects that present significant growth opportunities such as the Torrens Exploration Project in South Australia.
READ: Aeris Resources welcomes restart of drilling at Torrens copper-gold anomaly in South Australia
Aeris and its joint venture partner Argonaut Resources NL (ASX:ARE) recently commenced a high profile drill program at the Torrens anomaly, which has a footprint larger than Olympic Dam.