Stanmore Resources (ASX: SMR) will pay US$105 million to acquire 100% of the Moranbah South coking coal project tenements from Exxaro Resources.

"The acquisition of the Moranbah South tenements will represent a significant milestone for Stanmore's development portfolio, increasing our resource base and strengthening the platform to deliver on our future growth aspirations," CEO Marcelo Matos said.

"The tenements are strategically complementary to Stanmore's neighbouring projects, particularly Eagle Downs and the Isaac Downs Extension."

Matos said the significant resource base at Moranbah South is expected to be of premium hard coking coal quality and could potentially be accessed through mine infrastructure at Eagle Downs, should that project be developed.

"Furthermore, the acquisition of 100% of Moranbah South extinguishes up to US$60 million of deferred and contingent consideration under the 2024 Designated Area Agreement, which enabled access to the Isaac Downs Extension through the Moranbah South tenements," he continued. "This further enhances the value of the transaction and the economics of the Isaac Downs Extension."

The sale follows Exxaro's exercise of its joint venture pre-emptive rights, triggered by the sale of Anglo's Australian coal assets to Dhilmar QLD, to acquire Anglo's 50% interest in the MBS JV. Once completed, Exxaro will hold 100% of the MBS JV, and the MBS JV will terminate.

Completion of the transaction is expected before the end of the fourth quarter of 2026, following completion of Exxaro's acquisition from Anglo as well as satisfaction of certain limited conditions precedent relating to regulatory approvals. These include Foreign Investment Review Board approval, Australian Competition and Consumer Commission (ACCC) clearance, and indicative ministerial approval for the transfer of the MBS tenements.

The MBS tenements contain 724 million tonnes (Mt) of Measured and Indicated coal resources expected to be of premium hard coking coal quality. Stanmore had already acquired the rights to apply for a future mining lease over a designated area on the MBS JV tenements.

The deal continues a broader reshaping of ownership in Queensland's Bowen Basin, where Stanmore has previously bought assets from global majors scaling back their coal exposure, including its acquisition of BHP's 80% interest in BHP Mitsui Coal assets in 2022. Anglo American's exit from Australian coal, which triggered the pre-emptive rights exercised in this transaction, forms part of that same wave of consolidation.

Premium hard coking coal is a key input in steelmaking, and undeveloped resource bases of this scale in the Moranbah region are relatively scarce, which is why the tenements are considered strategically complementary to Stanmore's existing infrastructure positions at Eagle Downs and Isaac Downs. Completion of the deal, however, remains subject to the regulatory approvals noted above, and the anticipated Eagle Downs development pathway for accessing the resource is itself still conditional.

SMR shares were steady at $2.94, with a market capitalisation of $2.650 billion.