Cobra sells Wudinna gold assets to Barton Gold for up to A$15 million

LONDON - Cobra Resources plc (LSE:COBR) has entered into a binding conditional sale agreement with Barton Gold Holdings Ltd (ASX:BDG) to sell its Wudinna Gold Assets in South Australia for up to A$15 million in cash and shares, the company announced Monday.

The transaction, which requires Cobra shareholder approval, involves the sale of assets comprising a 279,000-ounce gold JORC Mineral Resource Estimate that Cobra defined in 2023 before its Heavy Rare Earth Element (HREE) discovery at the Boland Project.

Under the agreement, Cobra will receive A$0.5 million in cash payments across multiple tranches, A$5 million in Barton Gold ordinary shares payable in two tranches, and a potential additional A$2 million in shares upon reaching a resource milestone. The deal also includes production-linked payments of up to A$7.5 million.

Barton Gold, which currently holds 1.9 million ounces of gold resources across its Challenger, Tarcoola and Tunkillia projects in South Australia’s Gawler Craton, will see its total resource base exceed two million ounces with this acquisition.

"The key to maximizing value in small-to-mid size gold deposits is to minimize required capital through utilizing existing infrastructure and seeking synergy through scale," said Rupert Verco, Managing Director of Cobra.

Cobra will retain the exploration licence tenure over its Boland HREE Project while assigning gold and base metal rights to Barton Gold. The company will also maintain mineral rights for various elements including scandium, titanium, rare earth elements and others across the remaining Wudinna tenements.

The transaction is structured with various conditions, including the granting of subdivided exploration licence applications and obtaining necessary consents from South Australia’s Department for Energy & Mining.

Barton Gold shares issued as consideration will be subject to lock-in periods of one year for 40% of each tranche and two years for the remaining 60%.

The announcement was based on a company press release statement.

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