Yari Resources is set to double its coal resources in Queensland’s Bowen Basin through the acquisition of the Arcadia Coal Project, complementing its Rolleston South asset and advancing a district-scale consolidation strategy.
- Acquisition of Arcadia Coal Project adds 282Mt JORC resource
- Resource base exceeds 500 million tonnes post-acquisition
- Low upfront payment with milestone and success-based deferred consideration
- 1.5% gross revenue royalty secured against Arcadia tenements
- Capital raise of $2.2 million supports project advancement
Strategic Acquisition Doubles Coal Resource in Bowen Basin
Yari Resources Limited (ASX:YAR) has agreed to acquire 100% of Northern Comet Resources Company, owner of the Arcadia Coal Project in Central Queensland’s Bowen Basin. This move effectively doubles Yari’s coal resource base to over 500 million tonnes, a significant leap for the company’s footprint in the world-class Rolleston coal district.
The Arcadia project, comprising exploration permits EPC 1054, EPC 1772, and EPC 1042, holds a JORC 2012 Mineral Resource Estimate of 282 million tonnes, split between 164 million tonnes indicated and 118 million tonnes inferred. Situated roughly 24 kilometres from Yari’s existing Rolleston South Coal Project, Arcadia offers a complementary and regionally proximate tenure, enhancing Yari’s district-scale consolidation ambitions.
Deal Structure Aligns Payments with Project Success
Yari’s Managing Director, Courtney Taylor, emphasised the deal’s low upfront cost, with only a A$50,000 initial cash payment and 147.6 million completion shares issued under escrow. The bulk of the consideration is contingent on project milestones, including resource upgrades, granting of development licenses, mining leases, and notably, a series of success payments totaling A$20 million triggered by first commercial production and subsequent anniversaries.
Additionally, the agreement includes a 1.5% gross revenue royalty on all coal produced and sold from the Arcadia tenements, secured by a first-ranking mortgage. This royalty structure ensures ongoing vendor participation aligned with project revenues, while Yari retains operational control and discretion over exploration and development activities.
Capital Raise Supports Dual Project Development
To fund the acquisition and progress both Arcadia and Rolleston South, Yari is raising A$2.2 million via a placement of nearly 489 million shares at A$0.0045 each, accompanied by free attaching options exercisable at A$0.0075. The placement is split into two tranches, with the second tranche and all options subject to shareholder approval at an upcoming extraordinary general meeting scheduled for 11 September 2026.
The funds will underpin technical reviews, exploration, and advancement of the projects, with Yari poised to leverage the expanded resource base to explore long-term development scenarios across the Rolleston coal district.
Geology and Resource Quality Underpin Open Cut Potential
The Arcadia coal seams lie within the Permian Bandanna Formation, with target seams averaging between 2.4 and 5.2 metres thick and exhibiting low raw ash content around 7–8% on an air-dried basis. The resource extends from 120 to 250 metres depth and is considered amenable to open cut mining methods, constrained by a waste-to-coal strip ratio of 15:1.
Historical assessments suggest the coal has high energy content with low sulphur and phosphorus, and preliminary washability tests indicate yields of 85–90%. The coal is positioned between high-volatile semi-soft coking coal and export thermal coal, though Yari notes that further independent verification is required to confirm these quality attributes.
Next Steps Hinged on Approvals and Technical Review
Completion of the acquisition is conditional on shareholder and regulatory approvals, including those related to the issuance of completion shares and change of control under Queensland mining laws. Yari has six months from the SPA execution date to satisfy these conditions or face potential termination.
Following completion, Yari plans to integrate Arcadia into its broader Rolleston district strategy, conducting detailed technical reviews to refine resource estimates and assess development pathways. The acquisition aligns with Yari’s vision of building a district-scale coal position in a highly competitive tier-one basin.
Bottom Line?
Yari’s acquisition of Arcadia positions it as a more formidable player in the Bowen Basin, but execution risks remain around approvals and the technical validation of coal quality.
Questions in the middle?
- How will Yari’s milestone-linked payment structure impact its cash flow if project progress slows?
- What further technical work will be required to upgrade Arcadia’s inferred resources and confirm coal quality?
- Could Yari leverage its expanded resource base to attract joint ventures or partnerships in the Bowen Basin?