Cobra Resources to sell Wudinna gold assets for up to A$15m

LONDON - Cobra Resources plc (LSE:COBR) will convene a general meeting on July 24 to seek shareholder approval for the sale of its Wudinna Gold Assets to Barton Gold Holdings Ltd (ASX:BDG) for up to A$15 million, the company announced Monday.

The virtual meeting will consider an ordinary resolution for the transaction, for which the company has already secured irrevocable undertakings representing 39.38% of votes in favor.

Under the binding conditional sale agreement announced on June 30, Cobra will receive a combination of cash and Barton Gold shares. The consideration includes A$0.5 million in cash payments across multiple tranches, A$5 million in Barton Gold ordinary shares in two installments, an additional A$2 million in shares upon reaching a resource milestone, and up to A$7.5 million in production-linked cash payments.

Cobra will retain exploration license tenure over its Boland Heavy Rare Earth Element project while transferring gold and base metal rights to Barton Gold. The company will also maintain mineral rights for various elements including scandium, titanium, vanadium, and rare earth elements across the remaining Wudinna tenements.

Barton Gold, an ASX-listed gold developer focused on South Australia, currently holds a JORC-compliant gold resource of 1.9 million ounces across its Challenger, Tarcoola and Tunkillia projects. With the addition of Wudinna’s resources, Barton’s combined holdings will exceed two million ounces.

The production benefit portion of the agreement entitles Cobra to A$50 per ounce on 30% of the declared JORC Ore Reserve, up to a maximum of 150,000 ounces. Barton Gold maintains the option to buy out this benefit for 50% of its calculated value before production begins.

This article is based on a press release statement from Cobra Resources.

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