Funding the Next Chapter – AIC Mines Secures $55M Placement and US$40M Facility - A Copper Mining Story.
- Noel Ong
- Jul 18
- 6 min read
Announcement
AIC Mines Limited (ASX: A1M) has reached a major funding milestone with the successful completion of a $55 million Placement and the signing of a US$40 million Prepayment Facility and Offtake Agreement with Trafigura. These capital moves form a cornerstone of the company’s strategy to expand the Eloise Processing Plant and develop the Jericho Copper Mine, paving the way for a significant lift in copper output.
Figure 1: The Eloise Copper Mine Location (source: A1M)
Successful $55M Placement – Strong Institutional Support for a Copper Mining Story.
Announced on 24 June 2025, AIC Mines received firm commitments for $55 million from a combination of existing shareholders and new international investors, including notable institutions from North America and the UK.
The placement was structured in two tranches, comprising approximately 183.3 million new fully paid ordinary shares:
Tranche 1: ~142.8 million shares issued under the Company’s existing placement capacity under ASX Listing Rules 7.1 and 7.1A.
Tranche 2: ~40.5 million shares, subject to shareholder approval at a General Meeting expected in mid-August 2025.
The placement price of $0.30 per share represented a:
9.1% discount to the last close of $0.33
12.1% discount to the 5-day VWAP, and
10.8% discount to the 15-day VWAP.
AIC Mines has entered into a Strategic Investor Agreement with Hawke’s Point, creating a clear framework for potential future financial support. The agreement is designed to reduce funding risk over the next two years, particularly if new opportunities arise that require accelerated or additional capital.
AIC Mines’ Managing Director, Aaron Colleran, commented:
“This capital raising allows AIC Mines to fully commit to the expansion of the Eloise processing plant and development of the new Jericho copper mine. New shares have been preferentially placed to large long-term oriented resource investors with a number of important North American and British investors joining the register.”
“We have also entered into a strategic investor agreement with Hawke’s Point, crystallising over 18 months of due diligence and relationship building. Hawke’s Point has a unique approach to investing that has delivered them great success. It is therefore pleasing to see them join our register as part of the Placement and also enter into a strategic investor agreement, signalling their ongoing support.”
US$40M Prepayment Facility and Offtake Agreement – Strengthening the Trafigura Partnership
In a move that reinforces its longstanding relationship with Trafigura, AIC Mines has entered into a US$40 million prepayment facility to support the delivery of copper concentrate from the Jericho Mine. This arrangement, announced on 20 June 2025, provides flexible funding without the need for commodity hedging and includes an 18-month grace period before repayments begin.
Key facility terms include:
Interest rate: 3-month SOFR + 3% p.a.
Term: 36 months from availability
Security: Over Eloise and Jericho mining leases, AIC’s assets, and shareholdings
Early repayment flexibility
As part of the agreement, Trafigura has secured a minimum 400,000dmt offtake from the Jericho deposit under market-standard treatment and refining terms. Payment structure involves 90% provisional value upfront, with the balance settled post-assay. This builds upon the existing life-of-mine agreement for Eloise concentrate, established with Trafigura in 2021.
Fully Funded to Expand and Execute
These funding mechanisms—debt, equity, and internal cash flow—collectively underpin the $215.8 million capital program required to realise AIC Mines’ “step-change” production profile. The funds will be deployed as follows:
$77.6M to expand the Eloise plant to 1.1Mtpa (Figure 2)
$37.6M toward non-plant infrastructure and tailings expansion (Figure 3)
$61.0M to develop Jericho and complete the 3km underground link drive (Figure 4)
$12.0M allocated to exploration drilling across the company’s 2,000km² tenement base
$27.6M for working capital, offer costs, and corporate overheads
Figure 2: Eloise’s significant exploration upside (source: A1M)
In parallel, the existing Eloise Mine is expected to generate $62 million in free cash flow over the next 18 months, which will directly support development activities. Importantly, the Eloise expansion has already been de-risked with the award of a fixed-cost EPC contract to GR Engineering, with construction scheduled to begin in August 2025 and commissioning targeted for the December 2026 Quarter.
Figure 3: Eloise’s tailings dams (source: A1M).
Oversized processing equipment will be installed during Stage 1, allowing for a potential low-cost, high-efficiency upgrade to 1.5Mtpa in the future, contingent on increased mining rates at Jericho.
Figure 4: Jericho Deposit (source: A1M)
Samso Concluding Comments
For investors tracking the copper space, AIC Mines is now a growth-focused Australian mid-tier producer. This latest funding sequence demonstrates the alignment of capital markets, offtake partnerships, and operational readiness.
This capital restructure signals a pivotal shift for AIC Mines. It’s not just about raising funds—it’s about structuring funding in a way that drives near-term execution while future-proofing the long game. With a committed offtake partner in Trafigura, major shareholder and director participation, and a globally engaged investor base, the company has effectively de-risked the expansion pathway while enhancing its operational resilience.
AIC Mines is building momentum—securing flexible financing, locking in margins through scale, and planning with modular upgrades. Eloise and Jericho are now part of a larger vision—an emerging copper powerhouse, grounded in delivery.
The Samso Way – Seek the Research
The recent placement and strategic alignment suggest that AIC Mines (ASX: A1M) is gearing up to become the next mid-tier copper producer in Australia. With a market capitalisation of around AUD 172 million, the structure and scale of its funding—and the backing of strategic investor Hawke’s Point—position the company as a potentially “safer” copper play in an otherwise volatile sector. This isn’t just capital for capital’s sake; it’s targeted growth with future support mechanisms already in place. As always, Seek the Research.
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