Clara Faces Strategic Crossroads as Kildanga Review and Funding Raise Unfold
Clara Resources upgrades the Ashford Coking Coal Project resource classification and raises $1.6 million to fund a critical drilling program, while reviewing strategic options for its Kildanga Nickel/Cobalt asset.
- JORC resource upgrade at Ashford increases Measured coal category by 2.5 Mt
- Planned drilling program funded by $1.587 million capital raise
- Strategic review and land sale at Kildanga Nickel/Cobalt project ongoing
- All shareholder resolutions at recent EGM passed, including share issuances
- Exploration expenditure of $39,000 with no production activities this quarter
Ashford Coal Resource Upgrade
Clara Resources Limited (ASX, C7A) has delivered a significant update to its Ashford Coking Coal Project in New South Wales, releasing an updated JORC resource report that enhances confidence in the deposit’s structural and quality continuity. While the total coal resource remains largely unchanged at approximately 14.5 million tonnes, the company has successfully upgraded 2.5 million tonnes from the Inferred to the Measured category. This shift reflects the incorporation of previously unused drill hole data and historic mining pit surveys, providing a more robust foundation for future development planning.
Funding Secured for Drilling Program
Following the quarter, Clara secured $1.587 million through a combination of an institutional placement and a fully underwritten rights issue. This capital injection will finance a targeted drilling campaign on exploration licence EL6234, comprising four cored holes and eight chip holes. The program aims to further upgrade the resource classification, verify seam characteristics, and refine coal quality parameters critical for coking coal markets. These data will feed directly into the upcoming pre-feasibility study, underpinning mining plans, coal preparation processes, and cost models.
Kildanga Project Under Strategic Review
Meanwhile, Clara continues to evaluate strategic options for its Kildanga Nickel/Cobalt project in Queensland. The review includes consideration of potential divestment and exploration for a broader suite of critical minerals, a timely focus given recent geopolitical agreements between Australia and the United States on critical minerals cooperation. Post-quarter, the company completed a $230,000 land sale within the exploration tenement, a transaction that does not impede ongoing exploration rights.
Corporate and Financial Highlights
Clara’s recent Extraordinary General Meeting saw unanimous shareholder approval for several resolutions, including share issuances to directors and contractors in lieu of fees, as well as options granted to lead managers of the capital raise. Exploration expenditure for the quarter was modest at $39,000, focused on landholder engagement and cultural clearances, with no mining production or development activities reported. The company ended the quarter with $137,000 in cash, supported by financing activities that offset operating and investing outflows.
Outlook
With funding in place and an upgraded resource base, Clara is poised to advance its Ashford project through drilling and feasibility studies. The strategic review of Kildanga may reshape the company’s portfolio depending on market conditions and critical minerals demand. Investors will be watching closely for drilling results and the outcome of the rights issue, which is scheduled to close in early November.
Bottom Line?
Clara’s resource upgrade and capital raise set the stage for a pivotal drilling phase, with strategic decisions on Kildanga looming.
Questions in the middle?
- What will the drilling results reveal about Ashford’s coal quality and seam structure?
- How might the strategic review impact Clara’s focus on nickel, cobalt, and critical minerals?
- Will the fully underwritten rights issue close successfully and provide sufficient funding for upcoming milestones?
