Clara Resources acquires Renison Coal from Savannah Goldfields

Highlights:

• Clara has executed a binding terms sheet to purchase the remaining 60% of Renison Coal Pty Ltd (owner of the Ashford Coking Coal Project) from Savannah Goldfields Ltd for total consideration of US$3.95 million, plus a US$0.75/t future royalty on coal sales from the Ashford tenements.
• 100% ownership of Ashford is expected to open pathways for Clara to commence discussions with a number of interested potential future infrastructure and offtake parties around project funding in order to avoid equity funding.
• Completion of the acquisition is subject to Clara shareholder approval and the Clara board strongly supports the new acquisition agreement terms and recommends acceptance by all Clara shareholders.

Peter Westerhuis, Clara Resources CEO, said:

“This is a landmark transaction in firming up the future of the Ashford coking coal project. With what we anticipate to be very strong project economics, ownership of 100% of the project allows Clara vastly more flexibility in dealing with financing, permitting and ongoing project management issues. This agreement with Savannah Goldfields has also allowed us the opportunity to acquire 100% of Ashford at a significantly lower price (before royalty payments) than originally optioned, in line with current market conditions, allowing capital to be invested into advancing the project as a priority. The outlook for coking coal remains strong and the quality of Ashford is well placed to benefit from the forecast robust market conditions.”

Read the article online at: https://www.worldcoal.com/coal/28022024/clara-resources-acquires-renison-coal-from-savannah-goldfields/