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Stanmore Resources (ASX:SMR) has finalised a sale and purchase agreement with Aquila Coal and Aquila Exploration (Aquila) to acquire the remaining 50% interest in the Eagle Downs metallurgical coal project, alongside the Eagle Downs South metallurgical coal tenements and associated assets in Queensland’s Bowen Basin.
“In acquiring 100% of the Eagle Downs assets, Stanmore has full control over the development plan and is able to streamline management and fully leverage its strong technical capabilities, as well as unique infrastructure and logistics portfolio to unlock the value of the asset to its full extent. Stanmore will seek to optimise the development plan and take a capital-efficient approach to any future development decision,” Stanmore’s CEO and Executive Director Marcelo Matos said.
Initially, on February 12, Stanmore had entered into an agreement with a wholly owned subsidiary of South32 Limited to acquire South32’s 50% interest in Eagle Downs and 100% interest in Eagle Downs Coal Management. At the same time, discussions with Aquila were underway for the acquisition of a portion of Aquila’s interest in Eagle Downs and Eagle Downs South.
This transaction marks a step forward for Stanmore, with full ownership and control over the Assets, enabling the company to explore potential cost reductions for Eagle Downs by leveraging Stanmore’s existing Poitrel and Isaac Plains infrastructure, rail, and port portfolio.
The consideration payable to Aquila for the Transaction includes,
- US$15 million in cash upon Completion.
- US$20 million upon the first 100Kt of coal mined from long-wall mining methods.
For Eagle Downs South,
- A$2 million in cash upon Completion.
- A$10 million upon the first 100Kt of coal mined from longwall mining methods at Eagle Downs.
Completion of the South32 Transaction remains on track for the second quarter of 2024.
SMR last traded at $3.04 at 12pm AEDT.
