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

LONDON - Cobra Resources plc (LSE:COBR) announced Monday it 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 transaction, which requires Cobra shareholder approval, will allow Cobra to focus on advancing its Boland Heavy Rare Earth Element project while maintaining exposure to the gold assets through its stake in Barton Gold.

Under the agreement, Cobra will receive A$0.5 million in cash payments and A$5 million in Barton Gold shares in multiple tranches. Additional consideration includes A$2 million in Barton Gold shares upon reaching a resource milestone and up to A$7.5 million in production-linked cash payments.

The Wudinna Gold Assets include a 279,000-ounce gold JORC Mineral Resource that Cobra defined in 2023. With this acquisition, Barton Gold’s total resource base will exceed two million ounces across its South Australian projects.

Cobra will retain the mineral rights for rare earth elements and other specified minerals on the remaining Wudinna tenements, while assigning gold and base metal rights to Barton Gold.

"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, in the press release statement.

Barton Gold owns the only regional gold mill in the central Gawler Craton area, providing operational advantages for processing ore from the combined projects. The company aims to achieve annual gold production of 150,000 ounces by leveraging its expanded resource base and existing infrastructure.

The transaction is subject to various regulatory approvals, including consent from the South Australian Department for Energy & Mining. Cobra expects to send a circular to shareholders shortly seeking approval for the deal.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.