Key Highlights

  • Yari completed its Acquisition of the Arcadia Coal Project in the Bowen Basin on 20 October 2026.
  • Arcadia’s existing estimate is 282.0 million tonnes, made up of 164.0 Mt Indicated and 118.0 Mt Inferred.
  • Yari reports a combined 504.9 Mt of JORC coal resources across Rolleston South and Arcadia.
  • Cash rose to $1.61 million at 30 September after raising $2.19 million from a Placement at 0.45 cents a share.

Yari Resources (ASX:YAR) completed its acquisition of the Arcadia Coal Project in Queensland's Bowen Basin on 20 October 2026. It is now reviewing historical drilling and well records to see whether Arcadia's coal resource can be enlarged. On 3 November the company said its geological database now covers 199 historical boreholes and wells, most of them coal seam gas, petroleum and stratigraphic wells.

For now the resource has not changed. Arcadia's existing estimate is 282.0 million tonnes, made up of 164.0 Mt Indicated and 118.0 Mt Inferred. Yari says data validation, coal-quality work, geological modelling and Competent Person review are all needed before any revised estimate. According to its September quarter Cash Flow report, it had $1.61 million in cash, enough for about two quarters at the current spending rate.

A Bowen Basin coal portfolio

Yari is an exploration company with no production. Its first project was Rolleston South, near Glencore's Rolleston mine, which it initially reported at 78.9 Mt in May 2025. With Arcadia added, Yari reports a combined 504.9 Mt of JORC coal resources, comprising 197.7 Mt Indicated and 307.2 Mt Inferred. The company notes this figure is the sum of separately reported estimates, not a new combined estimate.

An independent coal-quality review released on 7 September found average in-situ ash of about 10%. It suggested Arcadia could support several products, including semi-soft coking coal, PCI coal and high-energy thermal coal. These are early indications only. Product yields and specifications have not yet been defined, and there is no development study.

What Yari paid for Arcadia

At completion Yari paid $50,000 in cash and issued 147.6 million shares, which are escrowed for 12 months. Using the 0.45 cent placement price, the company values this upfront consideration at about $714,000. However, it says this is not the total cost of the acquisition. Yari has also agreed to spend at least $400,000 over three years, plus $1.25 million of resource and tenure milestone payments, up to $20 million of production-linked payments, a 1.5% gross Revenue Royalty and a 10% share of any future sale proceeds. Most of these later obligations depend on the project progressing.

Cash and dilution

According to the September quarter Appendix 5B, released on 28 October 2026, net operating cash outflow was $789,000. Yari raised $2.19 million from Equity before costs, and cash rose from $492,000 to $1.61 million. It reported no finance facilities, and its estimated funding was 2.04 quarters.

The equity came from a placement of about 488.9 million shares at 0.45 cents. Each share came with a free option exercisable at 0.75 cents until 30 September 2028, and those Options were offered under a prospectus dated 6 October. According to the company, shares on issue rose from about 839.5 million before the Arcadia deal to about 1.48 billion after completion.

Risks

Thermal and metallurgical coal projects face financing, approval and price risks, and Demand for coal is heavily affected by energy transition policy. Yari is also likely to need more equity to fund studies and drilling, which would bring further dilution. The Arcadia deal includes vendor right-of-return provisions, and its milestone and royalty obligations would reduce any future project value. The company has not given a timetable for an updated Arcadia resource.