Yari’s Rolleston South Acquisition Raises Questions on Resource Growth and Share Dilution

Strategic Acquisition in a Premier Coal Basin

Yari Minerals has officially completed its acquisition of the Rolleston South Coal Project, a highly prospective coal exploration asset located in Queensland’s renowned Bowen Basin. This move significantly bolsters Yari’s portfolio by adding a JORC-compliant inferred resource of 78.9 million tonnes of coal, positioning the company to capitalize on one of Australia’s most prolific coal regions.

The Rolleston South project spans approximately 272 square kilometres and benefits from proximity to established coal operations owned by industry giants Glencore and Peabody, located within 25 kilometres. This adjacency not only underscores the quality of the resource but also ensures access to first-rate infrastructure, including sealed roads and nearby railways, which are critical for future development and export logistics.

Resource Potential and Exploration Upside

The project’s coal seams, primarily within the Bandanna Formation, have been delineated through historical drilling that identified six significant seams with thicknesses ranging from just over one metre to more than six metres. Laboratory analyses confirm the coal’s high calorific value and low ash content, making it suitable for both export thermal coal and semi-soft metallurgical coal products.

Yari is already advancing plans for an inaugural drilling campaign aimed at expanding the resource beyond the current inferred envelope and improving resource classification through infill drilling. This program is expected to commence within the year, reflecting the company’s commitment to unlocking the project’s full potential.

Consideration and Shareholder Engagement

The acquisition consideration is structured with an upfront issuance of approximately 119.6 million Yari shares, representing a 19.9% stake, alongside 86 million performance rights that vest upon the declaration of a coal resource exceeding 100 million tonnes. This arrangement aligns vendor incentives with Yari’s resource growth ambitions and requires shareholder approval, which is anticipated at a meeting scheduled for late June 2025.

Managing Director Anthony Italiano highlighted the strategic importance of the acquisition, emphasizing the company’s focus on resource expansion and metallurgical coal production. The integration of additional data from coal seam gas wells and seismic surveys is already underway to refine the resource model.

Positioning for Future Growth

With this acquisition, Yari Minerals not only enhances its coal resource base but also strengthens its foothold in a globally significant coal basin. The combination of a substantial inferred resource, exploration upside, and proximity to established mining infrastructure provides a solid foundation for future development. However, the company’s success will hinge on the outcomes of its drilling program and shareholder support for the deferred consideration components.