White Energy Company Locks in Coal Acquisitions Ahead of Capital Raising

White Energy Company (ASX: WEC) has executed binding sale and purchase agreements to acquire Essential Global Resources and Oceltip Coal 2, advancing plans to add metallurgical coal assets in the US and Queensland’s Surat Basin.

The transactions cover Essential Global Resources’ Lolley No. 1 underground metallurgical coal project in Alabama and Oceltip Coal 2’s planned acquisition of the Tin Hut Creek project.

White Energy is separately proposing to raise up to $15 million through the issue of 250 million shares at $0.06 each, with shareholder approval for the capital raising already secured.

Completion of both acquisitions is interdependent and remains subject to several conditions, with White Energy currently targeting September 2026.

Lolley Restart to Add US Exposure

White Energy has agreed to acquire 100% of Essential Global Resources for 83,333,333 shares issued at a deemed $0.06 each, implying a transaction value of about $5m.

Lolley No. 1 includes an on-site coal handling and preparation plant and access to existing rail and barge infrastructure, while in-seam slope development is described as well advanced.

The project is currently on care and maintenance and is proposed to be recommissioned in stages, although timing remains dependent on financing, approvals, restart planning, and implementation activities.

No production forecast has been provided, and White Energy will acquire the business largely on an as-is, where-is basis including environmental, industry-specific, and certain outstanding tax liabilities.

The 83,333,333 consideration shares will be subject to voluntary escrow for 12 months after completion, while Nathan Tinkler has indemnified White Energy for any finally determined US tax withholding liability above the US dollar equivalent of A$750,000.

Surat Basin Deal Broadens Portfolio

White Energy has separately agreed to acquire 100% of Oceltip Coal 2 for an aggregate purchase price of $4.5m, subject to adjustments for debts and other liabilities.

Oceltip Coal 2 is acquiring Tin Hut Creek, which covers about 4,000 sq km in Queensland’s Surat Basin between Wandoan and an area north of Chinchilla, and contains historically identified coal-bearing sequences within the Walloon Subgroup.

White Energy has not yet independently verified any historical exploration results or resource estimates relating to Tin Hut Creek, with a further $1m in cash or shares to become payable to a historical owner if a mining lease is granted in future.

The proposed capital raising will be managed by Aitken Mount Capital Partners, with settlement proceeds required before the acquisitions can complete and up to 50 million unlisted broker options approved for issue to the manager or its nominees.

Subject to completion and required approvals, Nathan Tinkler is proposed to become executive chair and managing director and may subscribe for up to 100 million White Energy shares under a two-tranche loan-funded share plan.