Aeris Resources (ASX:AIS) has confirmed to the ASX that it’s close to buying Glencore’s CSA copper mine in the western NSW town of Cobar.

Word of the deal was made public yesterday in the AFR’s Street Talk section. And it’s a big deal – Aeris is worth about $80 million, while the mine it wants to buy will probably set it back $800 milliion.

Aeris reported $236 million revenue and a $55 million profit last financial year. Street Talk said the deal would be funded by “senior debt provided by PAG and Orion” and up to $195 million in equity raised with the help of Macquarie Capital and RBC Capital Markets.

Aeris confirmed the scuttlebutt in a note to the ASX today, saying it “has made an offer to acquire the mine from Glencore”.

Funding, it says, “has not been finalised”. But it’s proposed the actual funding structure will consist of:

“…a combination of debt (between US$250m and US$300m), an equity capital raising (between US$185m and US$240m) and a silver stream (between US$35m to US$40m).”

The final sizing of and participants in the raising are yet to be finalised. Aeris did confirm that equity component will be managed by RBC Capital Markets and Macquarie Capital.

And it advised caution when it came to “trading on media speculation”.

“It is important to note that there is no guarantee that the potential acquisition will proceed.”

Aeris Resources (ASX:AIS) share price over the past six months.

In other ASX Base Metals news today:

 

  • Boadicea Resources (ASX: BOA) has found targets that warrant drill testing following a electromagnetic geophys survey at its Symons Hill Project. It’s the same sort of testing that helped hit paydirt at the adjacent Nova-Bollinger nickel-copper mine. Boadicea says it is “very encouraged” by the results and hopes to start drilling during the next quarter.

 

  • Sipa Resources Limited (ASX: SRI) reckons it’s worth running the airborne ruler over its Paterson North Project following Rio’s confirmation of the nearby Winu copper gold silver discovery. Airborne EM was a key factor in the Winu find, which is just 10km west of Sipa’s holdings. It will conduct the survey in early May.

 

  • Champion Iron (ASX: CIA) has released “strong results” from its 9350-metre drilling campaign at its  Powderhorn project in Newfoundland. One drill hole yielded a return of 23.6 per cent zinc and 163g/t of silver over 0.88m. Champion has previously noted the layer the sample was taken from locally reaches 4.5m in thickness. There’s even a little bit of gold in there.