Clara Finalizes Acquisition of Ashford Coking Coal Project in Australia

Clara Resources Australia Limited has announced the finalized acquisition of Renison Coal Pty Ltd. With this acquisition, Clara now holds a 100% ownership stake in the Ashford Coking Coal Project. This strategic move enhances Clara's position in the coal industry and strengthens its portfolio. The board of Directors extended their appreciation to all stakeholders involved in facilitating this acquisition and looks forward to leveraging the new assets to drive further growth and value for shareholders.

On April 4, 2024, Clara Resources Australia Limited received shareholder approval at the Extraordinary General Meeting (EGM) for the acquisition terms with Savannah Goldfields Ltd (SVG), securing their 60% stake in Renison. Consequently, Clara now fully owns Renison and holds complete ownership of the Ashford Coking Coal Project. To finance this acquisition, Clara sold its shares in LSE-listed First Tin plc, as reported to the ASX on July 10, 2024. This sale generated net proceeds of approximately A$4.3 million, facilitating the completion of the acquisition and enhancing Clara’s strategic position in the coal sector.

Located in New South Wales, the resource is situated in gently undulating terrain near the Severn River alluvial flats, with land primarily used for grazing and some crop farming. The Ashford Deposit was mined using opencut methods from 1958 to 1985, supplying raw coal to the adjacent Ashford Power Station until its permanent closure. Although the Ashford run-of-mine coal was provided to the power station, its qualities align with those of coking coal. The development of the deposit for export was hindered by its distance from export facilities and the lack of transport infrastructure.

Peter Westerhuis, CEO of Clara Resources, described the acquisition of full ownership of the Ashford coking coal project as a pivotal move for securing its future. He emphasized that having 100% ownership provides Clara with greater flexibility in financing, permitting, and managing the project. Westerhuis also noted that the strong projected economics of the Ashford project, combined with a favorable outlook for coking coal, positions it well to capitalize on anticipated robust market conditions.

Brisbane-based Clara Resources, focused on driving global economic growth and electrification, leverages its experienced leadership team in mineral exploration and mining to consistently deliver shareholder value. Well-positioned for the future, Clara boasts a portfolio of high-quality mineral assets across Queensland and New South Wales. Committed to excellence, innovation, and sustainability, they are a trusted partner for investors, stakeholders, and communities. Notably, Clara prioritizes coking coal, a critical component in steel production. The coking coal market significantly influences the steel and energy sectors due to its dependence on industrial demand, geopolitical factors, and environmental considerations. Understanding this dynamic market is crucial for stakeholders across these industries.