Stanmore Resources to buy Queensland coal project stake from China’s Baowu
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The news: Coal miner Stanmore Resources will buy out the balance stake in the Eagle Downs metallurgical coal project in Queensland from China’s Baowu.
The numbers: Stanmore will buy the 50% Eagle Down stake from Baowu’s subsidiary Aqila for up to $185 million, payable in cash and capped royalty payments.
It will also acquire the Eagle Downs South coal tenements for another $12 million, with the transaction being funded out of existing liquidity.
The context: The latest deal will give Stanmore a 100% stake in the Queensland metallurgical coal project. It acquired an initial 50% stake in the project from global miner South32 in February and had been in discussions with Aquila for the balance stake.
Stanmore said the transaction will allow it to assume full control over the assets and streamline the process to a development decision. It will undertake a final optimisation study to assess the potential for reducing overall development costs by using its existing infrastructure and rail and port assets in the area.
The source: ASX announcement
