Stanmore Resources is buying the Moranbah South project from Exxaro for about $145 million in a move that is set to boost its Eagle Downs and Isaac Downs Extension projects.

The deal has come about after Dhilmar’s move on Anglo American’s Queensland coking coal assets triggered Exxaro’s option to exercise its joint venture pre-emptive rights over the Moranbah South tenements.

The Moranbah South tenements contain 724Mt measured and indicated coal resources and are located next door to Stanmore’s advanced Eagle Downs project and the producing Isaac Plains Complex near the town of Moranbah.

“The acquisition of the Moranbah South tenements will represent a significant milestone for Stanmore’s development portfolio, increasing our resource base and strengthening the platform to deliver on our future growth aspirations,” Stanmore Resources (ASX:SMR) chief executive officer and executive director Marcelo Matos said.

“The tenements are strategically complementary to Stanmore’s neighbouring projects, particularly Eagle Downs and the Isaac Downs Extension.

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“The significant resources base of Moranbah South is expected to be of premium hard coking coal quality and may potentially be accessed through mine infrastructure at Eagle Downs, should that project be developed.

“Furthermore, the acquisition of 100 per cent of Moranbah South extinguishes up to $US60 million of deferred and contingent consideration under the 2024 Designated Area Agreement, which enabled access to the Isaac Downs Extension through the Moranbah South tenements.

“This further enhances the value of the transaction and the economics of the Isaac Downs Extension.”

Completion of the transaction is expected before the end of the year.

It is conditional on Exxaro holding a 100 per cent interest in the Moranbah South tenements through the completion of its acquisition of Anglo American’s 50 per cent stake.

Moranbah South is a potential underground mining development comprising two mineral development licences (MDL 277 and MDL 377) as well as an exploration permit for coal (EPC 548).

Stanmore had already acquired the rights to apply for a future mining lease over a designated area on two tenements (MDL277 and EPC548). These tenements now form part of Stanmore’s Isaac Downs Extension project.

The company said it intended to commission an independent resource report for Moranbah South when the acquisition process was complete.

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