The total consideration of $7 million is comprised of an upfront cash payment of $2 million and two additional deferred payment mechanisms – $2 million upon grant of a Mining Lease (ML) and $3 million payable as a $1 royalty per tonne sold.
The upfront payment will be funded from Stanmore cash reserves with future payments subject to development milestones of the project.
The project is about 10km east of Moranbah and 140km southwest of Mackay within the Queensland’s Bowen Basin. It is adjacent to the Peak Downs Highway and immediately to the south of the Goonyella rail branch which connects the project to the Dalrymple Bay Coal Terminal (DBCT).
“The area around Moranbah is a prime coking coal region within the Bowen Basin, with a number of nearby operating mines owned by significant players,” Stanmore said.
“The region is serviced by the coal ports of DBCT and the Hay Point Coal Terminal (BMA) near Mackay. Wotonga is well positioned for infrastructure with three existing rail loading facilities located within 7km of the deposit.”
The company is currently assessing potential infrastructure solutions for the deposit.