ASX-listed Clara Resources on Wednesday announced the completion of the Renison Coal acquisition and is now the sole owner of the Ashford coking coal project, in New South Wales.

Clara bought the project from Savannah Goldfields. It raised funding for the acquisition from the sale of its holding in LSE-listed First Tin for A$4.3-million.

The transaction is firming up the future of the Ashford coal project, said Clara CEO Peter Westerhuis.

“With what we anticipate to be very strong project economics, ownership of 100% of the project allows Clara vastly more flexibility in dealing with financing, permitting and ongoing project management issues. The outlook for coking coal remains strong and the quality of Ashford is well placed to benefit from the forecast robust market conditions,” said Westerhuis.

According to a March 2024 scoping study, the project will require A$100-million in preproduction capital, with a net present value of A$156.2-million and an internal rate of return of 53%.