*: -Aeris Resources (ASX:AIS) has confirmed to the ASX...

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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.”

IMO this deal is done. Neither party wants it to fail - both companies' future relies on the outcome. Glencore needs cash and wants to market copper. Aeries wants a second copper mine and does underground well (with contractors). CSA is a mature, remote mine for Glencore whilst a huge and exciting opportunity for AIS.

Welcome aboard CSA.