AERIS SECURES REFINANCING OF FACILITIES
Released
Released
Announcement PDF
8 May 2025
ASX/MEDIA RELEASE
AERIS SECURES REFINANCING OF FACILITIES
Highlights
Binding term sheet executed with Washington H. Soul Pattinson (WHSP) for
a $60 million Guarantee Facility to provide long-term environmental
bonding, replacing the current $50 million ANZ Guarantee Facility
$10 million currently in restricted cash released to provide additional
working capital
Existing $50 million Term Facility ($40 million drawn) extended to August
2026
No repayments or cash backing required for over 12 months under either
the Guarantee Facility or Term Facility
Post completion of the transaction, Aeris will have proforma unrestricted
cash of $32 million and liquidity of $42 million (including undrawn debt)
All environmental bonds now covered with $60 million Guarantee Facility
and $18 million in restricted cash
Board considered raising equity to repay the Term Facility but determined
that an extension of the Term Facility was more attractive than raising
equity in the current market
Established Australian copper-gold producer and explorer, Aeris Resources Limited
(ASX: AIS) (Aeris or the Company) is pleased to announce a refinancing of the
Company’s debt and guarantee facilities. The $50 million Guarantee Facility with
ANZ will be refinanced with a three-year, $60 million Guarantee Facility provided by
WHSP. The term of the existing $50 million Term Facility with WHSP (currently drawn
to $40 million) will be extended by 12 months.
Aeris Resources Limited ABN 30 147 131 977
Level 6, 120 Edward Street, Brisbane, 4000
E: info@aerisresources.com.au T: +61 7 3034 6200 F: +61 7 3034 6290
aerisresources.com.au
ABN 30 147 131 977
ABN 30 147 131 | Page1 977
Aeris’ Executive Chairman, Andre Labuschagne, said “this refinancing positions
Aeris for growth over the medium term. The current ANZ facility used for
environmental bonding will be replaced with a larger, longer-dated facility. The
existing WHSP Term Facility will be extended to 31 August 2026. The refinanced
facilities require no cash backing or repayments for over 12 months and provides
additional balance sheet flexibility. The refinancing also demonstrates WHSP’s long
term commitment to Aeris.”
WHSP was selected as the preferred provider of a new guarantee facility following
a competitive process. Key attractions of the WHSP proposal were the three-year
term of the facility, competitive rates and no mandatory hedging. All other providers
required mandatory hedging of approximately 50% of copper and gold production
over the life of the facility.
The three-year term of the new Guarantee Facility, combined with no required cash
backing for the first 12 months frees up cash flow in the period when Aeris plans to
invest in growth through the development of Constellation at Tritton and exploration
at both sites. This replacement facility also allows for the release of $10 million in
restricted cash currently held against the ANZ facility.
The existing $50 million Term Facility with WHSP will be extended to 31 August 2026.
This provides the necessary runway for improved Tritton production and stronger
cash flow in FY26.
The Company considered raising equity to repay the WHSP Term Facility and to
provide working capital, however the Board determined that an extension of the
current Term Facility was more attractive than raising equity in the current market
conditions. Working capital will however be bolstered by the release of $10 million
in cash currently cash backing the ANZ facility.
Post completion of the refinancing, Aeris will maintain its balance sheet debt
position of $40 million and have an unrestricted cash balance of $32.4 million1 with
no principal repayments or cash backing required for over 12 months.
Overview of the WHSP Guarantee Facility
Aeris executed a binding term sheet with WHSP for a $60 million Guarantee Facility
to be used to provide environmental bonding. Facility documentation is well
advanced and financial close is expected in June. Key terms of the Guarantee
Facility are outlined in the following table.
1 31 March 2025 reported cash balance (see ASX announcement “Quarterly activities report – March 2025”)
plus $10 million cash released from the ANZ facility
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Term
Provider
Washington H. Soul Pattinson and Company Limited
Facility Limit
$60 million
Term
3 years from Financial Close
Interest
8.95%
Cash Backing
$3.5m per quarter commencing from the end of 4th
calendar quarter after Financial Close
Security
First ranking general security deed over all Aeris Group
assets, subsidiaries, and undertakings (subject to grant of
a waiver of Listing Rule 10.1 by ASX or shareholder
approval)2
Establishment Fee
3% of Facility Limit
Exit Fee
4% of the Facility Limit payable in cash, if the
Facility is fully cash backed within 18 months after
first utilisation of the Facility; or
5% of the Facility Limit payable in cash, if the
Facility is fully cash backed on the date which is 18
months after first utilisation of the Facility
Bank Guarantee Provider
Costs
Estimated at 0.5 – 1.0% p.a.
Make Whole Fee
A make whole fee is payable if the whole or any part of
the Facility Limit is cancelled/repaid within the first 18
months after Financial Close
Covenants
Market standard for this type of facility
Conditions Precedent to
Financial Close
Execution of final documentation
Cancellation of ANZ Guarantee Facility
The grant by ASX of a waiver of Listing Rule 10.1(or
shareholder approval in the absence of a waiver)2
Other conditions to closing customary for
arrangements of this nature
2 As a 30%+ shareholder Aeris, WHSP is considered a ‘person in a position of influence’ under the Listing Rules
and the granting of security to WHSP (Relevant Security) is regarded as a ‘disposal’ of those assets by the
Company to WHSP. However, where certain conditions are satisfied, ASX may be prepared to grant a waiver of
Listing Rule 10.1 to the extent necessary to permit the Company to grant security over the assets of the Company
in favour of WHSP to secure the Company’s obligations under the Guarantee Facility without obtaining
shareholder approval (Security Waiver). The Company has applied to ASX for the grant of a Security Waiver. If
a Security Waiver is not obtained the Company will need to seek shareholder approval for the Guarantee
Facility under Listing Rule 10.1. There is no certainty that a Security Waiver will be granted (or shareholder
approval subsequently obtained).
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Extension of Term Facility
The $50 million Term Facility with WHSP (currently drawn to $40 million) has been
extended to 31 August 2026. An extension fee of $1.5 million is payable across three
short-term instalments and the exit fee on the Term Facility will increase by 2.0%. If
the facility is not repaid by 31 January 2026 an additional 2.0% exit fee will apply.
Equity Raising
The Company notes media speculation on 30 April 2025 regarding a potential equity
raising being undertaken by the Company, which was followed by the request for
trading halt dated 1 May 2025 and request for voluntary suspension dated 5 May
2025 which each reference the conduct of a potential capital raising. The
Company advises that it considered raising equity to repay the existing WHSP term
facility and to provide working capital, however the Board determined that an
extension of the current facility was more attractive than raising equity in current
market conditions.
Aeris was advised by BurnVoir Corporate Finance on the refinancing transaction.
Additional Disclosures
As a result of the Company having been under a trading halt and subject to
voluntary suspension, the Company makes the following statements as required by
ASX:
Aeris is not in breach of any of its banking covenants; and
Aeris is solvent and able to pay its debts as and when they fall due.
Conference Call
Investors are invited to join a conference call hosted by André Labuschagne,
Executive Chairman, today, 8 May 2025 at 11:00am (Sydney time).
To access the call please use the link below to register. Once registered, dial-in
details will be provided.
Registration Link:
https://us06web.zoom.us/j/85458227449?pwd=STb5RFcd6FkcvIb25ETfrX0mcNe8MD.1
Passcode: 539289
This announcement is authorised for lodgement by:
Andre Labuschagne
Executive Chairman
ENDS
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For further information, please contact:
Andre Labuschagne
Executive Chairman
Tel: +61 7 3034 6200
Stefan Edelman
General Manager – Corporate Development
investorrelations@aerisresources.com.au
or visit our website at www.aerisresources.com.au
About Aeris
Aeris Resources is a mid-tier base and precious metals producer. Its copper dominant portfolio
comprises two operating assets, a mine on care and maintenance, a long-life development project
and a highly prospective exploration portfolio.
Aeris has a strong pipeline of organic growth projects, an aggressive exploration program and
continues to investigate strategic merger and acquisition opportunities. The Company’s experienced
board and management team bring significant corporate and technical expertise to a lean
operating model. Aeris is committed to building strong partnerships with its key community,
investment and workforce stakeholders.
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