Aeris Resources (AIS) M&A announcement summary

Deal rationale and strategic fit

• Acquisition creates a diversified copper and gold mining hub, extending mine life at Tritton to over 10 years and enhancing operational flexibility and market position, with significant growth upside as projects remain open at depth.

• Consolidates advanced copper assets in the Cobar region, resulting in a combined tenement package of 3,822km² and over 3,000 sq km of exploration ground.

• Leverages existing processing infrastructure, reducing capital and funding risks, and positions the enlarged group as a more liquid and investable copper and gold producer.

• Peel shareholders gain immediate value at a premium and retain exposure to exploration upside via a demerger of non-core assets into NewCo.

• Provides both parties with exposure to a larger, more liquid ASX-listed copper and gold producer.

Financial terms and conditions

• Peel shareholders receive 0.3363 Aeris shares per Peel share and one NewCo share for every 4.6 Peel shares, valuing Peel at A$0.234 per share and A$214 million equity value.

• The offer represents a 46% premium to Peel's closing price, 49.1% to one-month VWAP, and 53.4% to two-month VWAP.

• Pro-forma ownership: Aeris shareholders 79.5%, Peel shareholders 20.5%.

• Combined entity to have a pro-forma market capitalisation of approximately A$850 million.

• Peel shareholders receive a demerger distribution valued at AUD 0.044 per share.

Synergies and expected cost savings

• Full utilisation of Tritton’s 1.8Mtpa processing plant eliminates the need for new plant construction at South Cobar, reducing unit costs and complexity.

• Consolidation allows for more efficient use of infrastructure and exploration spend.

• Mallee Bull’s high Indicated status and preliminary mine design facilitate rapid Ore Reserve release and integration.

• Potential cost benefits from increased throughput and maximising mill capacity.

• Integration study already underway to optimise mine scheduling and resource efficiency.