IGO to record impairment against nickel assets in strategy shift
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Stanmore Resources (ASX: SMR) has secured total ownership of the Eagle Downs (ED) metallurgical coal project by acquiring the remaining 50% stake in the asset and a 100% interest in the neighbouring Eagle Downs South (EDS) tenement in Queensland, Australia, from Aquila Coal.
The transaction comes two months after Stanmore entered into agreements with South32 (ASX, LON, JSE: S32) to acquire both tenements.
The Brisbane-based coal miner will pay $15 million for ED and $2 million for EDS at closing. Additional payments of $20 million and $10 million are due upon extraction of the first 100,000 tonnes of coal from each site, respectively.
The total for ED also includes a capped royalty stream of up to nearly $150 million, based on coal price thresholds.
The move boosts Stanmore’s portfolio of metallurgical coal assets, positioning the company to increase its production capacity.
The acquisition is subject to regulatory approvals and it is expected to be completed in the second half of 2024.
