BRISBANE: AIC Mines Limited announced Wednesday it has entered into binding agreements to acquire 100% of Matera Metals Limited, owner of the Mt Cuthbert copper project in northwest Queensland, in a deal valued at $120 million.

The acquisition, which is subject to shareholder approval and completion of a concurrent placement, is expected to close in early November 2026. AIC Mines said the deal will create a second copper hub for the company alongside its existing Eloise-Jericho operations.

Transaction Details

The consideration comprises $20 million in cash and $100 million in AIC Mines fully paid ordinary shares, equal to approximately 125.8 million shares based on an issue price of $0.795 per share.

Concurrently, AIC Mines has entered into a non-brokered share subscription agreement with existing major shareholder Hawke’s Point Resource Finance to subscribe for approximately 88.1 million new shares at $0.795 per share, raising $70 million before costs. The placement will fund the cash component of the acquisition, an accelerated resource development and exploration plan, ongoing care and maintenance costs, and transaction costs.

Asset Overview

Mt Cuthbert is an advanced copper project located 150 kilometers northwest of AIC Mines’ Eloise-Jericho operations. The project holds defined mineral resources totaling 18.7 million tonnes at 1.3% copper for 246,000 tonnes of contained copper, all located on 100% granted mining leases.

The project includes an 8,000-tonne-per-year solvent extraction and electrowinning processing facility, currently on care and maintenance, designed to treat copper oxide material. Sulphide material was previously treated through the Ernest Henry concentrator in 2020, producing approximately 5,700 tonnes of copper in concentrate at a recovery rate of 92%.

Supporting infrastructure includes a 64-room camp, site offices, workshops, and kitchen and dining buildings.

Growth Potential

AIC Mines said Mt Cuthbert has seen minimal exploration since the early 2000s, with almost no drilling targeting copper sulphide mineralization. The company plans an accelerated exploration and development program, including a two-year, approximately 60,000-meter resource definition diamond drilling program to define the critical mass required for a standalone copper sulphide operation.

The project covers a district-scale 2,400-square-kilometer tenement package with 15 priority drill-ready prospects identified. Mineral resources are concentrated at Crusader, Mt Cuthbert, and Mt Watson, with all resources open along strike and at depth.

“We have reviewed almost all of the advanced-stage copper opportunities in the Mt Isa–Cloncurry region over the last five years, and Mt Cuthbert is by far the best opportunity we have seen — due to its established resource base, strong exploration upside, and the strategic fit alongside our existing operations,” said AIC Mines Managing Director Aaron Colleran.

Value Accretion

AIC Mines said the acquisition values Mt Cuthbert at approximately $488 per tonne of copper resource, compared with the company’s implied valuation of approximately $1,028 per tonne. The deal increases AIC Mines’ copper mineral resources by 39% to 878,000 tonnes and copper mineral resources per share by 17%.

Regional Synergies

The company said Mt Cuthbert has similar geology to Eloise-Jericho, allowing for cost-effective resource definition, exploration, and project development. AIC Mines cited its track record of resource growth at the Jericho deposit, where mineral resources have increased by more than 240% since acquisition in January 2023.

The company also noted its recent experience taking Jericho from a similar stage to first copper production in three years.

Existing Operations

AIC Mines’ foundational Eloise copper mine achieved its production guidance for the third consecutive year in FY26, producing 13,064 tonnes of copper and 6,621 ounces of gold in concentrate. The company generated net mine cash flow of $63.3 million after capital.

For FY27, AIC Mines has guided production of 17,500 to 18,500 tonnes of copper and 7,250 to 7,500 ounces of gold in concentrate from Eloise-Jericho.

The company is undertaking a Stage 1 plant expansion to 1.1 million tonnes per annum, on schedule for commissioning in the December 2026 quarter. A Stage 2 expansion to 1.5 million tonnes per annum is planned to commence in FY28, with completion targeted for the December 2028 quarter.

Board and Shareholders

AIC Mines’ board of directors comprises Josef El-Raghy as chairman, Aaron Colleran as managing director, and Linda Hale, Mark Le Messier, and Jon Young as non-executive directors.

Following completion of the transaction, AIC Mines will have approximately 1.01 billion shares on issue and a market capitalization of approximately $805.6 million based on the $0.795 issue price.