Yari Resources signs SPA for Arcadia Coal Project acquisition

Yari Resources has signed a binding conditional share sale and purchase agreement (SPA) to acquire 100% of the Arcadia Coal Project in the Bowen Basin, central Queensland, Australia.

The move will increase the company's coal resource base to more than 500 million tonnes (mt).

The proposed transaction involves Yari Resources purchasing 100% of Northern Comet Resources, the entity which holds the Arcadia Coal Project exploration permits.

Completion of the deal remains subject to certain conditions including approval from Yari shareholders.

The Arcadia Coal Project comprises three exploration permits: EPC 1054, EPC 1772 and EPC 1042.

According to reported figures, EPC 1772 contains a Joint Ore Reserves Committee 2012 mineral resource estimate of 282mt, split between 164mt indicated and 118mt inferred.

Under the acquisition, Northern Comet Resources will become a wholly owned subsidiary of Yari Resources.

Upon completion of the transaction, Northern Comet Resources will also sign a royalty deed with Utopia Resources.

This agreement will require Northern Comet to pay a 1.5% royalty on gross revenue generated from coal produced and sold from the Arcadia tenements.

Yari Resources will provide a guarantee for these obligations, which will be secured through a registered mortgage over the project's tenements.

The Arcadia Coal Project is situated in the Rolleston coal district, approximately 60km north of Injune and 85km south of Rolleston.

This area is separate from Yari's existing Rolleston South Coal Project, which lies nearby.

Geological assessments of the Arcadia Project indicate that main coal seams are contained within relatively simple stratigraphy in the Bandanna Formation, with coal resources at depths suited to open-cut mining methods.

Yari managing director Courtney Taylor said: "This is about turning Rolleston South from a stand-alone project into the foundation of a much larger regional opportunity.

"Arcadia gives Yari additional scale, more geological data and a broader platform to assess long-term development options across the Rolleston coal district. Importantly, the transaction is structured so that the major consideration is linked to project success."

"Yari Resources signs SPA for Arcadia Coal Project acquisition" was originally created and published by Mining Technology, a GlobalData owned brand.