Clara Resources Australia has completed the acquisition of Renison Coal, which owns the Ashford coking coal project in New South Wales (NSW), Australia.
The acquisition was finalised following shareholder approval at an extraordinary general meeting (EGM), where terms with Savannah Goldfields were agreed upon for Clara to acquire its 60% stake in Renison.
Clara funded this deal through the sale of its holdings in First Tin, which generated net proceeds of approximately A$4.3m ($2.89m).
Savannah received a total consideration for its shareholding in Renison Coal, which included cash payments amounting to A$4.398m and 11.1 million Clara ordinary shares.
This transaction has increased Savannah’s shareholding in Clara to nearly 19.5%.
Additionally, Savannah retains a royalty interest, receiving $0.75 per tonne of coal produced from the Ashford project, which holds an indicated and inferred resource of 14.8 million tonnes of in-situ coal.
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By GlobalData
Savannah said it will now concentrate on its gold mining and exploration projects in North Queensland.
On 4 March 2024, Clara released a scoping study for the Ashford Coking Coal Project, providing an early-stage assessment of the project’s technical and commercial viability.
This project is located within exploration licence tenements EL6234 and EL6428 in NSW’s Northern Tablelands.
The Ashford deposit, which was mined by open-cut methods until 1985, supplied raw coal to the adjacent power station and is characterised as coking coal.
Mining at the project was later halted in the period coinciding with the permanent closure of the power station.
