Peel’s Copper Project Sale Risks Shareholder Exposure Amid Complex Restructure
Peel Mining has agreed to sell its South Cobar Copper Project to Aeris Resources in a $214 million transaction, while spinning off its remaining assets into a new ASX-listed company, NewCo. The deal offers Peel shareholders immediate value and ongoing exposure to a diversified metals portfolio.
- South Cobar Copper Project sold to Aeris via Scheme of Arrangement
- Peel shareholders receive Aeris shares plus shares in new company NewCo
- Transaction values Peel at $0.234 per share, a 49.1% premium to recent VWAP
- Peel shareholders to own 20.5% of Aeris and 100% of NewCo
- NewCo to list on ASX focusing on precious and base metals exploration
A Transformational Deal for Peel Mining
Peel Mining Limited has announced a landmark $214 million transaction to sell its South Cobar Copper Project, including the Mallee Bull and Wirlong deposits, to Aeris Resources. This move is structured through a Scheme of Arrangement whereby Aeris will acquire 100% of Peel’s issued shares. Concurrently, Peel will spin off its remaining precious and base metals assets in the Cobar Basin into a new entity, NewCo, which will be distributed to Peel shareholders.
The deal represents a significant premium to Peel’s recent trading prices, with the total consideration valued at $0.234 per Peel share; comprising 0.3363 Aeris shares per Peel share and approximately one NewCo share for every 4.6 Peel shares held. This values Peel at a 49.1% premium to its one-month volume weighted average price (VWAP) and nearly 175% above its September 2025 capital raising price.
Unlocking Synergies and Growth Potential
By integrating the South Cobar Copper Project with Aeris’ established Tritton processing infrastructure, the transaction aims to fast-track development while reducing capital and operational risks. Aeris, a mid-tier copper and gold producer, brings operational expertise and a strong management team, positioning the combined group for a potential 10-year mine life and enhanced production profile.
Peel shareholders will collectively own 20.5% of Aeris, gaining exposure to a larger, more liquid base and precious metals producer. Meanwhile, NewCo will hold Peel’s remaining assets, including the high-grade Southern Nights Complex, May Day deposit, and extensive exploration tenure in the Cobar Basin. NewCo is expected to list on the ASX and pursue a growth strategy focused on exploration and accretive mergers and acquisitions under Peel’s existing management team.
Board Support and Next Steps
The Peel board has unanimously recommended the transaction, with major shareholders such as Perth Capital Pty Ltd signaling their support. The deal is subject to shareholder approval, court and regulatory consents, and an independent expert’s endorsement. Peel plans to distribute NewCo shares to shareholders via an in-specie distribution, with NewCo’s ASX listing and a proposed IPO capital raising underwritten for a minimum of $4 million.
Shareholders will be invited to vote on the Scheme and Demerger at meetings expected in mid-June 2026, with the Scheme Booklet and explanatory materials to be provided in early May. If approved, the transaction is anticipated to complete by early July 2026, with NewCo’s listing targeted for the third quarter of 2026.
A New Chapter for Peel Shareholders
This transaction crystallises immediate value for Peel shareholders while preserving upside exposure to Peel’s broader asset base through NewCo. The consolidation within the Cobar Basin is a strategic move that could unlock significant latent value, leveraging Aeris’ processing capabilities and Peel’s high-grade exploration portfolio. Investors will be watching closely as NewCo embarks on its ASX debut and exploration programs, while the combined Aeris-Peel entity seeks to enhance its market position in copper and precious metals.
Bottom Line?
Peel’s bold restructuring sets the stage for accelerated copper development and a fresh exploration frontier with NewCo’s ASX debut.
Questions in the middle?
- Will Peel shareholders embrace the dual exposure to Aeris and NewCo as a balanced growth strategy?
- How quickly can Aeris integrate and develop the South Cobar Copper Project to extend mine life?
- What exploration milestones and M&A opportunities will NewCo pursue post-listing?
