Join our daily newsletter At The Bell to receive exclusive market insights
- Transaction conditional on Exxaro holding100% interest in Moranbah South tenements
- Exxaro moving to complete acquisition of Anglo American’s 50% interest in the tenements
- Tenements contain 724 Mt Measured and Indicated coal resources
- Acquisition provides significant value uplift at Eagle Downs
Stanmore Resources (ASX: SMR) is outlaying US$105 million to acquire 100% of the Moranbah South coking coal project tenements from Exxaro Resources.
Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week.
“The acquisition of the Moranbah South tenements will represent a significant milestone for Stanmore’s development portfolio, increasing our resource base and strengthening the platform to deliver on our future growth aspirations,” CEO, Marcelo Matos, said.
“The tenements are strategically complementary to Stanmore’s neighbouring projects, particularly Eagle Downs and the Isaac Downs Extension.”
Mr Matos said the significant resources base of Moranbah South is expected to be of premium hard coking coal quality and may potentially be accessed through mine infrastructure at Eagle Downs, should that project be developed.
“Furthermore, the acquisition of 100% of Moranbah South extinguishes up to US$60 million of deferred and contingent consideration under the 2024 Designated Area Agreement, which enabled access to the Isaac Downs Extension through the Moranbah South tenements.
“This further enhances the value of the transaction and the economics of the Isaac Downs Extension,” Mr Matos said.
Exxaro has exercised its joint venture pre-emptive rights triggered by the sale of Anglo’s Australian coal assets to Dhilmar QLD to acquire Anglo’s 50% interest in the MBS JV. Once completed, Exxaro will hold 100% of the MBS JV and the MBS JV will terminate.
Completion of the transaction is expected before the end of the fourth quarter of 2026, following completion of Exxaro’s acquisition from Anglo as well as satisfaction of certain limited conditions precedent regarding regulatory approvals, such as Foreign Investment Review Board, Australian Competition and Consumer Commission (ACCC) and indicative ministerial approval for the transfer of the MBS tenements.
The MBS tenements contain 724 million tonnes (Mt) of Measured and Indicated coal resources expected to be of premium hard coking coal quality.
Stanmore had already acquired the rights to apply for a future mining lease over a designated area on the MBS JV tenements.
SMR was steady at $2.94. Mkt cap $2.650B.
Join the discussion: See what HotCopper users are saying about Stanmore Resources right now and be part of the conversations that move the markets.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.
