SUBIAKO: Yari Minerals Limited (ASX: YAR) has entered a binding agreement to acquire the Rolleston South Coal Project, a highly prospective coal exploration asset in Queensland’s Bowen Basin. The deal includes an upfront and deferred share-based payment, with the potential to expand the project’s resource base.
Key Details of the Acquisition
– Resource Potential: The project covers 272 square kilometers and holds a JORC-compliant inferred resource of 78.9 million metric tons of coal. Historical drilling identified six coal seams with exploration upside.
– Strategic Location: The site is near existing operations by Glencore and Peabody, with access to sealed roads and rail infrastructure.
– Transaction Terms: Yari will issue 119.6 million shares (19.9% stake) to vendors and an additional 86 million performance rights if the resource exceeds 100 million metric tons.
Project Highlights
– Coal Quality: Initial analysis indicates high-calorific-value coal suitable for thermal and semi-soft metallurgical markets, with washed coal energy values ranging between 24.33–27.98 megajoules per kilogram.
– Exploration Plans: Yari aims to finalize drilling targets this year, focusing on resource growth and upgrading the classification of existing deposits.
Anthony Italiano, managing director of Yari, said the acquisition aligns with the company’s strategy to secure tier-1 assets with near-term development potential. “The Rolleston South project offers a clear path to resource expansion and future production scenarios,” he noted.
The deal is subject to due diligence, with completion expected in May 2025. Shareholder approval will be sought for deferred share issuances at a meeting in June.