Austral Resources has bought its way out of the agreement that tied up its copper production in northwest Queensland, giving the company direct exposure to a metal fetching strong prices on global markets.

The producer will pay $51.98m to end the Anthill Project Agreement (APA) with Glencore and Secover, a deal that had capped how fast Austral could mine and process ore at its Mt Kelly operation, near Mount Isa.

Austral non-executive chairman David Newling said the move gives the company room it did not have before.

“The extinguishment of the APA adds immediate operational clarity and potential value to the company,” Newling said.

Ending the agreement clears Glencore and Secover’s security over Austral’s assets and releases the company from current and future claims tied to it. Austral will now keep the full benefit of its Anthill copper production, lift output from its Mt Clarke/Flying Horse and Lady Annie cutback operations, and start an early heap leach re-mine that had been held back as security against the APA.

About three quarters of the settlement will be paid in cash, at $37.6m, with the rest in 159,830,504 new shares issued at nine cents each. That price sits 40 per cent above Austral’s closing price of 6.4 cents on 27 July 2026, and both parties agreed to take shares rather than cash alone.

“Both participants have agreed that the termination is to be partly settled in shares, at 9 cents per share which is the last equity raising price (and a premium to the current trading price), demonstrating their belief in the company’s future and their alignment to existing shareholders.”

Glencore said the deal is part of a wider push in the region.

“The strategic partnership between Glencore and Austral Resources continues to strengthen the Northwest Queensland minerals province by ensuring ongoing copper production and access to a global network of customers.”

Austral expects to complete the settlement by the end of July 2026, paid from existing cash and placement capacity. The company says it remains fully funded through to the restart of its Rocklands facility in mid-2027, while it weighs a non-binding proposal for Hammer Metals.

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