The Ashford project produces a mid-volatile hard coking coal with high coke yield based on a 14.8 million tonnes resource, which Laneway believes will be valuable to global steel makers.

Laneway intends to move away from coal as it continues to focus on its gold portfolio.

This includes the Agate Creek gold project in Queensland, which Laneway is hoping to move into production.

The company stated that the sale would deliver further value for the Ashford project.

Under the acquisition, AusTin will hold a 40 per cent interest in Ashford project owner and Laneway subsidiary Renison Coal, while Laneway will now hold a 20 per cent interest in Aus Tin.

Laneway stated the 20 per cent stake will allow the company to “retain considerable exposure” to the future of the Ashford project, while enabling shareholders to draw value from Aus Tin’s portfolio.

The stage two of the acquisition will see Aus Tin have the option of securing the remaining 60 per cent interest of the Ashford project from Laneway, in return for $7 million and $0.50 for every tonne of coal produced at Ashford.

Aus Tin owns the Taronga tin project in northern New South Wales and Mt Cobalt project in Queensland.

The company’s Granville tin project in Tasmania is on care and maintenance with the company seeking to divest the asset.

The Ashford project is 60 kilometres north of Inverell.