Stanmore Resources to Acquire Remaining Interest in Eagle Downs

Stanmore Resources Ltd has signed a definitive sale and purchase agreement with Aquila Coal Pty Ltd and Aquila Exploration Pty Ltd, both wholly owned subsidiaries of China Baowu Steel Group Corp. Ltd, to acquire the remaining 50% interest in the Eagle Downs metallurgical coal project it does not already own, as well as the Eagle Downs South metallurgical coal tenements and associated assets.

As announced to the ASX on 12 February 2024, Stanmore entered into agreements with a wholly owned subsidiary of South32 Ltd to acquire South32’s 50% interest in Eagle Downs and 100% interest in Eagle Downs Coal Management. At the time, Stanmore was in discussions with Aquila to acquire part of Aquila’s interest in Eagle Downs and Eagle Downs South.

Completion of the transaction is expected during 2H24, following the satisfaction of certain limited conditions precedent, including but not limited to Foreign Investment Review Board approval, Chinese regulatory approval and certain third-party consents.

Marcelo Matos, CEO and Executive Director, added:

“In acquiring 100% of the Eagle Downs assets Stanmore has full control over the development plan and is able to streamline management and fully leverage its strong technical capabilities, as well as unique infrastructure and logistics portfolio to unlock the value of the asset to its full extent. Stanmore will seek to optimise the development plan and take a capital efficient approach to any future development decision.”