TIDMCOBR
RNS Number : 0951S
Cobra Resources PLC
07 March 2019
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF EU REGULATION 596/2014. UPON THE PUBLICATION OF
THIS ANNOUNCEMENT VIA A REGULATORY NEWS SERVICE, THIS INSIDE
INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN
PART, DIRECTLY OR INDIRECTLY IN OR INTO THE UNITED STATES,
AUSTRALIA, CANADA, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER
JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE
RELEVANT LAWS OF SUCH JURISDICTION.
For immediate release
7 March 2019
Cobra Resources plc
("Cobra" or the "Company")
Proposed Acquisition of Lady Alice Mines and Suspension of
Listing
Cobra, a company formed to make acquisitions of tenements and
projects in the natural resources sector, today announces that is
has signed an acquisition agreement (the "Acquisition Agreement")
to acquire 100% of the units in the Lady Alice Trust and the entire
issued share capital of Lady Alice Mines Pty Ltd, as trustee of the
Lady Alice Trust (the "Proposed Acquisition").
The Lady Alice Trust is the sole owner of:
- 100% of right title and interest in South Australian
Exploration Licence Number 6016 (the "Prince Alfred Licence") a
formerly producing copper mine (the "Prince Alfred Mine"); and
- an entitlement to earn a 75% equity interest in 5 large
tenements near Wudinna in South Australia (the "Wudinna Project")
for gold exploration, under the terms of an agreement (the "Wudinna
Agreement") with Andromeda Metals Limited ("Andromeda"), a company
listed on the Australian Securities Exchange, and Peninsula
Resources Limited.
Additional details on the Wudinna Agreement in relation to the
Wudinna Project can be found on Andromeda's web site:
http://www.andromet.com.au/images/uploads/reports/20171031Eyre_Peninsula_JV.pdf
As the Proposed Acquisition will constitute a reverse takeover
for the purposes of the FCA's Listing Rules, in accordance with
Listing Rule 5.1, the Company has requested that the Company's
Ordinary Shares be suspended from listing on the Official List
pending the publication of a prospectus, which will follow
completion, or until the Company confirms that the Proposed
Acquisition is not proceeding.
Key Highlights:
-- The Prince Alfred Mine was discovered in 1866 and is located
100km north-east of Port Augusta in South Australia. The Mine was
in production during the 1870s, closing in 1874. It started
producing ore again between 1888 - 1909, producing 12kt of ore and
shipping concentrate to Wallaroo. It closed in 1909 due to a crash
in the price of copper and in 1967 until early 1970s the tailings
were tank leached to recover 600t of copper.
-- The copper mineralisation at the Prince Alfred Mine is
stratiform, and believed to be shear-hosted, with historic grades
reported as 5% Cu. No modern exploration has occurred at the
site.
-- Cobra will also acquire the right to earn 75% of the Wudinna
Project, which is located on the Eyre Peninsula in the Central
Gawler Gold Province, a 450km arcuate belt which contains numerous
mineral deposits.
-- The Wudinna Project tenement package represents a land
holding of 1931 km(2) , comprising five tenements: EL/5953,
EL/5615, EL/5381, EL/6131 and EL/6001. This underexplored, but
prospective terrane, offers upside potential with a large number of
untested anomalies and drill ready targets.
-- The mineralisation at the Wudinna Project is hosted by
shallow-plunging stacked quartz-pyrite veins. While under shallow
cover, advanced geochemical sampling techniques have proved
effective in locating high-grade mineralisation.
-- Three deposits at the Wudinna Project have been discovered to date:
-- the Barns gold deposit was discovered in 2000 with
significant intersections including 12 meters at 3.38g/t gold from
67 meters in RCBN-123, and 35.49 meters at 1.80g/t gold from 115
meters in PDBN-134;
-- the White Tank deposit was discovered in 2003 with
significant intersections including 7 meters at 10.03g/t gold from
63 meters in RHBN-234, and 17 meters at 3.47g/t gold from 60 meters
in RHBN-248.3.2004; and
-- the Baggy Green deposit, was discovered in 2004 with
significant intersections including 8 meters at 4.79g/t gold from
34 meters in WUD6-770, and 5 meters at 9.01g/t gold from 66 meters
in BGRC-865.
Rolf Gerritsen, Chief Executive Officer of Cobra commented:
"I am delighted to announce the acquisition of Lady Alice, which
will set Cobra up with two extremely exciting projects in the
copper and gold sectors. The acquisition will represent a core
asset to Cobra and will be used as a platform for future growth. We
believe that the opportunities offered via this acquisition are
considerable and look forward to completing the transaction and
getting on with the real job of creating value for our shareholders
by progressing the projects."
Transaction:
Cobra will acquire 100% of the issued share capital of Lady
Alice Mines Pty Ltd (as trustee for the Lady Alice Trust) from the
Lady Alice Mines Pty Ltd shareholders for consideration of A$1,000.
Additionally, the unitholders of the Lady Alice Trust will, by way
of assignment, transfer all of the units in the Lady Alice Trust to
Cobra (the "Assignment"). As consideration for the Assignment,
Cobra will issue ordinary shares of Cobra (the "Ordinary Shares")
to the unitholders and grant options over further Ordinary Shares
to the unitholders, exercisable upon certain thresholds being
reached in the equity interest held by Lady Alice in the Wudinna
Project.
Under the terms of the Wudinna Agreement, Lady Alice Mines Pty
Ltd will fund up to A$5 million through a staged earn-in over a
(maximum) six year period to earn up to 75% equity in the Wudinna
Project joint venture vehicle.
The principle terms of the Wudinna Agreement are as follows:
-- Stage One: Lady Alice will sole fund A$2.1million within 3
years of execution of the Wudinna Agreement to earn a 50% equity
position.
-- Stage Two: At the completion of Stage One, a joint venture
vehicle can be formed, or alternatively, Lady Alice can spend a
further A$1.65 million over an additional 2 years to earn a 65%
equity interest in the Wudinna Project.
-- Stage Three: At the completion of Stage Two, a joint venture
vehicle can be formed, or alternatively, Lady Alice can spend a
further A$1.25 million within 1 year to earn 75% of the equity in
the Wudinna Project, being a total A$5 million to secure 75% of the
Wudinna Project.
-- Once the joint venture vehicle is formed, the parties will
contribute to further expenditure in accordance with their
respective equity positions, or dilute using standard dilution
procedures.
-- Lady Alice will act as operator of the Wudinna Project.
Additional details on the Proposed Acquisition, the Prince
Alfred Mine and the Wudinna Project can be found on Cobra's web
site: www.cobraresourcesplc.com
The Company will proceed to prepare and publish a Prospectus in
the coming weeks which will include a Competent Persons Report on
the assets of the Company as enlarged by the Proposed
Acquisition.
The person who arranged for the release of this announcement on
behalf of the Company was Rolf Gerritsen, Chief Executive Officer
of the Company.
End
Enquiries:
Cobra Resources plc Rolf Gerritsen +44 (0)20 7129 1471
Nick Emerson
SI Capital Limited (Broker) Sam Lomanto +44 (0)14 8341 3500
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