Stanmore Resources has closed its acquisition of the Eagle Downs Metallurgical Coal Joint Venture project (Eagle Downs), now owning and controlling 100% of the venture.
This follows the finalisation of agreements with both South32 and Aquila for their respective shares in the Queensland, Australia-based project.
In February, Stanmore secured a 50% stake in the Eagle Downs Project from South32 for $135m (A$206.5m).
The payment included an initial $15m cash payment, $20m upon the extraction of the first 100,000 tonnes (t) of coal and a capped royalty of approximately $100m.
Stanmore also finalised the acquisition of the remaining 50% stake in Eagle Downs and a 100% interest in the Eagle Downs South tenements from Aquila.
The company paid $15m for Eagle Downs and an additional $2m for the Eagle Downs South tenements at closing, with further payments of $20m and $10m due upon the extraction of the first 100,000t of coal from each site.
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Stanmore made the upfront payments for both the Eagle Downs and Eagle Downs South acquisitions using its current liquidity.
The Eagle Downs deal also includes a capped royalty that could reach up to $150m, contingent on coal prices.
Having met all conditions precedent, Stanmore has now confirmed the completion of the acquisitions from South32 and Aquila.
The company also begun work to review the Eagle Downs Project and is considering the most capital-efficient approach to any future development decisions.
Stanmore CEO Marcelo Matos said: “Stanmore is excited by the opportunity afforded by completing this acquisition. Stanmore will now seek to optimise the development plan and take a capital efficient approach to any development decision.”
