Alara’s Debt Restructure and Exploration Push Signal Key Growth Phase Risks

Operational Momentum at Al Wash-hi Majaza

Alara Resources Limited has reported a robust quarter ending 30 June 2025, marked by significant operational enhancements at its flagship Al Wash-hi Majaza Copper-Gold Project in Oman. The installation and commissioning of two new tailings filter presses, sourced from China, are expected to elevate copper-gold concentrate production close to design capacity in the coming quarter. This upgrade follows a successful ramp-up since August 2024, with 20 concentrate shipments dispatched to date, collectively containing nearly 4,000 metric tonnes of copper and close to 88 kilograms of gold.

Complementing this, a new concentrate storage shed capable of holding up to 5,000 metric tonnes has been completed, enhancing logistics and operational efficiency. A scheduled plant shutdown in July to replace SAG mill liners is anticipated to improve production continuity and shipment regularity.

Exploration Advances Across Multiple Concessions

Exploration efforts continue apace across Alara’s portfolio in Oman. The Phase-1 diamond drilling campaign at Al Wash-hi Majaza concluded successfully, intersecting consistent copper sulphide mineralisation and setting the stage for an updated Mineral Resource Estimate later this year. Phase-2 drilling will focus on delineating extensions to known mineralisation, supported by downhole geophysical surveys.

In the greenfield arena, the Mullaq Copper-Gold Project and Al Ajal Prospect are undergoing systematic exploration, including remote sensing, geophysical surveys, and geochemical sampling. Meanwhile, the recently consolidated Block 22B concession has seen strategic planning and recruitment to support a comprehensive exploration program targeting copper, gold, chromite, and platinum group elements.

Power Metal Resources’ work in Block 8 has identified robust copper targets at the Al Maider and Al Mansur prospects, with encouraging rock chip and trench sampling results. Further geophysical surveys and mapping are underway to refine drill targets, with an initial drilling program anticipated following the license renewal.

Financial and Corporate Developments

Alara successfully completed a private placement raising A$3.4 million at a 60% premium to the recent share price, with substantial participation from major shareholder Al Tasnim Infrastructure LLC and Director Vikas Jain. Proceeds have been partly allocated to repaying a portion of the Trafigura loan, which was recently amended to restructure repayments and interest terms, improving financial flexibility.

The company reported positive operating cash flow for the quarter and maintains cash reserves and financing facilities totaling over A$22 million, supporting ongoing operations and exploration. A rights issue is planned to fund Alara’s share of joint venture expenses and working capital needs.

Commitment to Safety and Sustainability

Health, safety, and environmental performance remain a priority, with the Al Wash-hi Majaza operation surpassing one million man-hours without a lost time incident. Initiatives such as firefighting training and medical screening camps reinforce workforce well-being. Environmental monitoring confirms compliance with regulatory standards, and sustainability campaigns, including tree planting and clean-up drives, align with global environmental awareness efforts.

Looking ahead, Alara anticipates further drilling results, mining license approvals, and continued exploration progress across its Oman projects, positioning the company for sustained growth in the copper-gold sector.