Clara Resources Australia acquisition update

Clara Resources Australia Limited (ASX: $C7A) has provided an update on the acquisition of the remaining 60% of Renison Coal Pty Ltd, owner of the Ashford Coking Coal Project, from Savannah Goldfields Limited. The total consideration for the acquisition is $3.95m, along with a $0.75/tonne future royalty on coal sales from the Ashford tenements. The Share Purchase Agreement (SPA) is set to replace the previous Share Acquisition Agreement made in April 2021, with the Completion Date of the SPA scheduled on or before 22 May 2024. Clara and Savannah have agreed to extend the SPA Completion to 12 June 2024, with an option for further extension to 1 July 2024.

Executive Commentary on Acquisition Progress

We are pleased to announce the progress made in the acquisition of the remaining 60% of Renison Coal Pty Ltd, which includes the Ashford Coking Coal Project. The Binding Agreements to purchase the project from Savannah Goldfields Limited for a total consideration of $3.95m, along with a $0.75/tonne future royalty on coal sales, mark a significant step for Clara Resources Australia. The extension of the Completion Date of the SPA to 12 June 2024, with an option for further extension to 1 July 2024, provides us with the necessary flexibility to ensure a smooth and successful completion of the acquisition. We believe that the Ashford Coking Coal Project holds great potential and will contribute positively to our future endeavors.

Summary of Clara Resources Australia's Acquisition Update

Clara Resources Australia Limited (ASX: $C7A) has made significant progress in the acquisition of the remaining 60% of Renison Coal Pty Ltd, the owner of the Ashford Coking Coal Project, from Savannah Goldfields Limited. The total consideration for the acquisition is $3.95m, with an additional $0.75/tonne future royalty on coal sales from the Ashford tenements. The Share Purchase Agreement (SPA) is set to replace the previous Share Acquisition Agreement made in April 2021, with the Completion Date of the SPA extended to 12 June 2024, and an option for further extension to 1 July 2024. The Letter of Variation outlines the key terms for the extension, including the agreement to make payments and the corresponding increase in the Transaction Consideration. The completion of this acquisition is expected to enhance Clara Resources Australia's position in the coal sector and contribute to its future growth and development plans.