Aurelia settles litigation with Glencore

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Image credit: Aurelia Metals website

After a five-month standoff that threatened its entire existence, Aurelia Metals has announced that it has settled the litigation with Glencore.

Image credit: Aurelia Metals website
Image credit: Aurelia Metals website

The two companies were disputing over the repayment of $120 million in facilities that were provided by Glencore to Aurelia. A settlement was finally reached last week which saved Aurelia from going into administration.

According to the ASX Announcement, aside from Glencore providing new $21.5 million in new funding, the two companies will agree a yearlong business plan for Aurelia’s Hera mine in New South Wales.

Further, under the terms of the new agreement, all existing repayments from Aurelia to Glencore have now been deferred for at least two years.

“Aurelia welcomes the Agreement, a its sets aside the considerable legal and financial uncertainty around the Company whilst providing a net A$21.5 million funding together with a substantial deferral of existing debt repayments and interest. Aurelia can now proceed with the rectification and optimisation of the Hera project and position the business for growth,” said Aurelia Chief Executive Officer Rimas Kairaitis.

Aurelia Metals is an exploration and mineral development company focused on the development and exploration of the Hera-Nymagee Project in western New South Wales.