Now a Perth-based miner hopes to become a domestic producer as it aims to secure a foothold in the renewable energy sector and go carbon neutral.
Greenvale Mining announced this week that it had struck a deal to acquire an initial majority stake in geothermal start-up Within Energy, which launched last year and has already snared three exploration sites across about 11,000 sqkm in Queensland.
The Within projects are potentially eligible for carbon credits and renewable energy certificates, which could help Greenvale develop its flagship Alpha Torbanite project in Central Queensland.
The project, near the tiny hamlet of Alpha about 170km west of Emerald, aims to extract torbanite, otherwise known as boghead coal or channel coal, which was first discovered in the area in 1939.
It’s considered one of the only commercial deposits left in Australia of the fine-grained black oil shale, which can be turned into bitumen and light crude oil.
“Green energy and the move towards decarbonisation represent an unprecedented growth opportunity in the modern era, and this acquisition puts Greenvale at the forefront of this global transition,’’ Greenvale managing director Neil Biddle said.
“This transaction represents an outstanding outcome for shareholders, potentially providing valuable carbon offsets to support the development of our flagship Alpha Torbanite project, while also providing the potential for strong long-term cash flows for the company through the sale of carbon credits.’’
Under the deal, Greenvale will issue 3 million of its shares, currently valued at about $585,000, for a 51 per cent stake in Within.
If Within’s geothermal projects near Brisbane, Maryborough and Gladstone then achieve certain benchmarks, Greenvale will move to full ownership by issuing 50 million of its shares, now valued at about $9.75m.
Greenvale said Within chief executive Adam Stepanoff, based in Toowoomba, would join the executive team to serve as chief operating officer for renewables.
Within is aiming to use “binary cycle’’ technology, which allows for energy production from lower temperature thermal reservoirs. The approach, used overseas, can reduce initial capital costs.
As part of its pivot towards renewable power, Greenvale said it would seek shareholder approval to change its name to Greenvale Energy Limited.
It has also agreed to offload an 80 per cent stake in its Georgina Basin IOCG project to listed Astro Resources. That project is focused on iron-oxide, copper and gold deposits across about 4500 sqm in the Northern Territory.
To settle the deal, Astro will transfer 1.15 billion of its shares with a current value of $5.75m to Greenvale and it retains to right to acquire the 20 per cent balance.
Mr Biddle and fellow director Tony Leibowitz will join the Astro board as part of the transaction, which will also see Greenvale chief executive Matthew Healy take on the same role at Astro.
The repositioning comes as Greenvale continues to suffer losses and its shares trade at roughly 20c, about a third of its recent high in August. Greenvale reported a $5.25m net loss in the December half, following annual losses including $1m in 2021.
But market analysts rate Mr Biddle, a geologist who has spent more than 35 years in the sector and held numerous board roles.
He was among the founding directors of Pilbara Minerals, which is now worth nearly $7bn as it oversees one of the biggest lithium-tantalum projects in the world.
