Stanmore Completes Purchase of Eagle Downs Mining Project

Stanmore Resources Limited has announced significant advancements in its acquisition strategy related to the Eagle Downs Metallurgical Coal Joint Venture. In February 2024, the Company confirmed the execution of a definitive sale and purchase agreement with a wholly owned subsidiary of South32. This agreement entails acquiring a 50% interest in the Eagle Downs Metallurgical Coal Joint Venture and obtaining 100% ownership of Eagle Downs Coal Management Pty Ltd. This decision positions Stanmore to increase its stake and influence in a key metallurgical coal asset.

Further bolstering its portfolio, Stanmore Resources executed another crucial agreement on April 5, 2024. This agreement with Aquila Coal Pty Ltd and Aquila Exploration Pty Ltd—both majority-owned subsidiaries of China Baowu Steel Group Corporation Limited—grants Stanmore the remaining 50% interest in the Eagle Downs Metallurgical Coal Joint Venture. Additionally, it secures a 100% interest in the Eagle Downs South metallurgical coal tenements and associated assets. This dual acquisition strategy underscores Stanmore's commitment to expanding its metallurgical coal assets and reinforcing its strategic foothold in the industry.

Stanmore Resources revealed hat it has met all conditions precedent and successfully finalized the acquisitions from South32 and Aquila. With these transactions now completed, Stanmore has achieved full ownership and control of the Eagle Downs Project. This strategic acquisition consolidates Stanmore’s position in the metallurgical coal sector, enabling the Company to fully integrate and manage the Eagle Downs Project’s assets. The completion of these deals marks a significant milestone for Stanmore, enhancing its portfolio and operational capabilities within the coal industry, and positioning it for future growth and development.

Commenting on the successful completion of the acquisitions, CEO Marcelo Matos expressed enthusiasm about the new opportunities presented by fully acquiring the Eagle Downs Project. He highlighted that Stanmore is eager to optimize the development plan for the project, aiming to enhance efficiency and effectiveness. Matos emphasized the Company’s commitment to adopting a capital-efficient approach in its future development decisions, ensuring that investments are managed wisely to maximize value and returns while advancing the project’s growth and potential.

In alignment with the terms of the agreements, Stanmore Resources has made payments totaling US$30 million in cash for the acquisition of the Eagle Downs Project. Additionally, Stanmore has disbursed A$2 million for the Eagle Downs South assets. The Company also settled approximately US$4 million in completion adjustments. These payments reflect Stanmore’s commitment to securing full ownership and control of the Eagle Downs Project and its associated assets, ensuring the smooth transition of these valuable resources into its operational portfolio.