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Aeris Resources has a new substantial shareholder in HSBC Holdings

Published: 01:06 05 Oct 2018 EDT

Bags of cash
Aeris is an Australian copper producer and explorer

Aeris Resources Ltd (ASX:AIS) has a new substantial shareholder with HSBC Holdings plc (LON:HSBA) holding a 6.36% interest.

Initial substantial shareholder status was reached on October 2 with HSBC Custody Nominees (Australia) Limited acquiring almost 13.777 million shares with a total value exceeding $2.755 million.

HSBC Holdings and related entities now hold more than 28.865 million shares in the copper-focused producer and explorer.

READ: Aeris Resources receives $28.4 million cash from capital raising

Aeris recently settled $28.4 million in funding as a result of a placement and institutional entitlement offer.

The retail component of the entitlement offer is seeking to raise an additional $6.7 million through a 1 for 2.1 non-renounceable entitlement priced at 20 cents.

The retail component closes at 5.00pm AEST on Tuesday, October 9, 2018.

Funding will be used to accelerate the exploration programs at the 100%-owned Tritton Copper Operations in New South Wales and the 70%-owned Torrens Joint Venture in South Australia.

READ: Aeris Resources reduces debt by US$20 million

Yesterday, the company made a US$20 million payment against its Tranche B debt facility with Special Portfolio Opportunity V Limited.

The payment reduces the balance of the Tranche B facility to US$10 million and positively avoids a 3% interest rate step‐up.

Aeris’ total debt is now reduced to US$29 million, comprised of the US$19 million Tranche A facility and US$10 million Tranche B facility.

Producing at Tritton

The company is producing copper at its Tritton project in New South Wales and in the June quarter produced 7,592 tonnes, an 11% increase on the previous quarter.

It also has a 70% interest in the Torrens Copper Project in South Australia alongside Argonaut Resources NL (ASX:ARE).

Exploring at Torrens JV

Torrens is a coincident magnetic and gravity anomaly with a footprint considerably larger than that of the world-class Olympic Dam deposit.

The joint venture, with Aeris as manager, has committed to a stage I drill program, consisting of up to 10 holes focusing on priority targets, with drilling scheduled to start before the end of 2018.