ASX-listed coal exploration company Yari Resources is expanding its coal resource base in the Bowen basin, in Queensland, Australia, by entering into a binding conditional agreement to acquire a 100% interest in the Arcadia coal project from mineral exploration company Comet Resources.

This acquisition is set to double Yari’s Joint Ore Reserves Committee (Jorc) mineral resource estimate to more than 500-million tonnes, thereby advancing the company’s strategic district-scale consolidation in the Rolleston coal district amid rising competition for resources within the Bowen basin.

The company also highlights that the proposed acquisition of the Arcadia project is consistent with Yari’s strategy to consolidate a district-scale coal position within the Rolleston coal district, with a reported total coal resource of about 222.9-million tonnes, including a maiden indicated resource of 33.7-million tonnes.

“This is about turning Rolleston South from a standalone project into the foundation of a much larger regional opportunity. Arcadia gives Yari additional scale, more geological data and a broader platform to assess long-term development options across the Rolleston coal district.

“Yari is maximising shareholder value by structuring the transaction with low upfront consideration and most of the value linked to project milestones, including initial coal production and a gross royalty.

“Recent merger and acquisition activity in the Bowen basin highlights the value of these assets and we are delighted to be expanding our resource base in this world-class coal district, supporting Yari’s district scale consolidation strategy,” says Yari Resources MD Courtney Taylor.

In terms of coal quality, Yari highlights that the Arcadia project has previously been assessed as having the potential to produce export product coal with favourable quality attributes identified in historical assessments including high energy content, low inherent ash, low sulphur and washability yields of about 85% to 90%.

So far Yari has received firm commitments from new and existing private and institutional investors to raise up to $2.2-million through the issuance of about 488-million in fully paid ordinary shares at an issue price of $0.0045 a share.

The acquisition is expected to expand Yari's regional position and provide additional opportunity to assess shallow coal occurrences across the broader project area as part of future exploration and development studies.