Stanmore Resources Agreement Announcement

Stanmore Resources Limited (ASX:SMR) has finalized a binding and definitive agreement with Anglo American and Exxaro, the participants of the Moranbah South Joint Venture, to acquire the rights for exploring, studying, and applying for a future mining lease over a Designated Area. This area is located adjacent to Stanmore's Isaac South project, and the addition of the low strip ratio Designated Area is anticipated to enhance the project's economics and extend its operational life beyond the current Isaac Downs pits.

CEO Marcelo Matos on Agreement Impact

CEO Marcelo Matos expressed, 'This transaction paves the way for the development of our Isaac South project in a more competitive and lower average strip ratio basis, as a natural capital efficient brownfield extension of our current Isaac Downs mine, prolonging the overall mine life at our Isaac Plains Complex.'

Summary of Stanmore Resources Agreement

Stanmore Resources Limited has successfully secured the rights to explore, study, and apply for a future mining lease over a Designated Area adjacent to its Isaac South project. The addition of this area is expected to improve the project's economics and extend its operational life. The upfront consideration payment for the transaction amounts to US$15 million, with additional deferred consideration and contingent royalty linked to certain coal price thresholds. The company is now prioritizing the necessary studies and approvals to progress and compress the timeframe to bring this project to an investment decision. This strategic move aims to utilize the existing infrastructure for years to come, subject to mining approvals, and is anticipated to contribute significantly to the total mineable resource of the enlarged Isaac South project. CEO Marcelo Matos emphasized the importance of swiftly progressing the necessary approvals to ensure continuity of operations and employment at the Isaac Plains Complex, potentially adding another 15 years of ROM coal mining at the same rate.