Barton Gold Holdings (ASX: BGD) (OTCQB: BGDFF) has received a critical go-ahead for its acquisition of the Wudinna gold project, with Cobra Resources shareholders voting in favour of the deal.
Barton made the move to add to its strong gold and silver position with a $15 million bid in late June for the 279,000-ounce Wudinna asset on South Australia’s Eyre Peninsula.
Approval overnight from Cobra’s UK shareholders has now handed Barton binding rights to the project’s ownership.
Highly Valuable Addition
“Wudinna is a highly valuable addition to Barton’s SA gold platform, which is now over 2 million ounces and set to grow further with the pending re-estimation of the Challenger underground mine,” managing director Alexander Scanlon said.
“With this transaction approved, we will now continue our evaluation of opportunities to integrate Wudinna into our long-term regional development objectives.”
“The Wudinna acquisition was agreed on compelling terms for Barton, and in a framework of significant mutual benefit to each of Barton and Cobra.”
“Cobra’s shareholders will continue to hold a gold exposure through Barton and its considerably larger regional gold development platform, and both Barton and Cobra will focus on their respective areas of development interest—gold and rare earths (respectively).”
Sizeable Gold Bounty
Barton believes Wudinna has the potential to add significant future gold ounces to its growing gold story, on top of the company’s recent world-scale silver discovery at Tolmer and continuing drilling successes at its Tunkillia and Tarcoola gold projects.
The company also holds a critical infrastructure advantage with ownership of the region’s only gold mill, adding to a strategy aimed at low-cost resources growth.
Wudinna features the Barns, White Tank, Clarke and Baggy Green deposits that host a combined 5.8 million tonnes of ore at 1.5 grams per tonne gold.
The two parties will now complete escrow and an orderly market agreements, following which Barton will issue the tranche of $800,000 worth of shares to Cobra to advance the purchase toward final settlement.
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