REG - Cobra Resources PLC - Acquisition & Bookbuild

Cobra ResourcesAnnouncement

14/11/2023 16:30

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RNS Number : 4085T  Cobra Resources PLC  14 November 2023

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
REGULATION 2014/596/EU WHICH IS PART OF DOMESTIC UK LAW PURSUANT TO THE MARKET
ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310) ("UK MAR"). UPON THE
PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION (AS DEFINED IN UK
MAR) 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.

 

14 November 2023

 

Cobra Resources plc

("Cobra" or the "Company")

 

Acquisition of Remaining 25% of Wudinna Gold and Rare Earth Project

&

Launch of Placing to Raise c.£1 Million via Accelerated Bookbuild

 

Cobra (https://cobraplc.com/) , an exploration company focused on the Wudinna
Gold and Rare Earth Project in South Australia, is pleased to announce an
agreement with Andromeda Metals (https://www.andromet.com.au/) (ASX: ADN)
("Andromeda") pursuant to which Cobra will acquire the remaining 25% of the
Wudinna Gold and Rare Earth Project (the "Wudinna Subdivision and Sale
Agreement") for £260,050 in cash ("Cash Consideration") and the issue of
approximately 52,010,000 new ordinary shares in Cobra at a price of 1 pence
per share ("Consideration Shares").

 

Pursuant to the Wudinna Subdivision and Sale Agreement, Cobra's wholly owned
subsidiary, Lady Alice Mines Pty Ltd ("LAM") will acquire all the exploration
rights in the relevant tenements held by Andromeda's subsidiary Peninsula
Resources Pty Ltd ("Peninsula") by Peninsula relinquishing existing tenement
rights and LAM applying for the grant of new tenements over the areas. The
partial surrender process is a preferred process for acquisition as the
granting of new tenements resets the tenement clocks, enabling renewals of up
to a further 18 years.

 

In conjunction with the Wudinna Subdivision and Sale Agreement, Cobra
announces that it is proposing to raise up to £990,000, before expenses, by
way of a placing (the "Placing") of up to 99,130,000 new ordinary shares of 1
pence each in the capital of the Company (the "Placing Shares") (being the
Company's maximum available headroom under its existing authorities to issue
and allot shares), at a price of 1 pence per Placing Share (the "Issue
Price"). Each Placing Share will be issued with a warrant attached, with an
exercise price of 2 pence (the "Warrants"). Any exercise of the Warrants will
be subject to the approval of shareholders at a General Meeting (as explained
below).

 

Proceeds from the Placing will be used to satisfy the Cash Consideration and
the execution of the Company's planned work programme to advance the Boland
ionic rare earth discovery.

 

The Placing Shares are being offered by way of an accelerated bookbuild
process (the "Bookbuild") which will be launched immediately following the
release of this announcement. SI Capital is acting as lead bookrunner in
connection with the Placing. The Company has received commitments from the
original vendors to Cobra of the Wudinna Gold and Rare Earth Project in 2019
(the "Former Lady Alice Unitholders") to subscribe, in cash, for approximately
60% of the Placing, thereby increasing their combined ownership of Cobra from
26.99% to up to 29.99%. In total, the Former Lady Alice Unitholders have
committed to invest £606,000 subject to the issue of the Consideration Shares
to Andromeda (to ensure their aggregate holdings in the Company do not exceed
29.99%).

 

A further announcement will be issued with the results of the Bookbuild. A
circular convening a General Meeting for the purposes of, inter alia,
approving the issue of the Consideration Shares and granting authority to
issue the shares into which the Warrants may covert, will be published in due
course. The admission to trading of the Consideration Shares will also be
conditional upon the publication of a secondary prospectus by the Company.

 

Rupert Verco, CEO of Cobra, commented:

 

"We are delighted to have concluded an agreement to acquire the remaining 25%
of the Wudinna Gold and Rare Earth Project from Andromeda. Andromeda will
retain an ongoing interest by way of a shareholding in Cobra while enabling
them to focus on bringing their Great White Kaolin mine into production. Cobra
can progress the project, which includes Australia's only ionic rare earth
discovery with in situ recovery potential, as the sole owner and dominant
holder of palaeo-channel ground in the region.

 

We are pleased with the strong commitment demonstrated by the original Wudinna
vendors effectively underwriting a majority of the Placing. They recognise the
opportunity the market is yet to appreciate that is presented by a confirmed,
scalable ionic rare earth occurrence which lends itself to a low cost, low
impact mining method, on a project underpinned by a dual and complementary
gold and rare earth resource.

 

We look forward to advancing our ionic rare earth discovery through in situ
recovery concept advancement, demonstrating scale, building on outstanding
metallurgy, and advancing our commercial strategy."

 

Enquiries:

 

 Cobra Resources plc                           via Vigo Consulting

 Rupert Verco (Australia)                      +44 (0)20 7390 0234

 Dan Maling (UK)

 SI Capital Limited (Joint Broker)             +44 (0)1483 413 500

 Nick Emerson

 Sam Lomanto

 Shard Capital Partners LLP (Joint Broker)

                                                                                         +44 (0)20
 Erik Woolgar                                  7186 9952

 Damon Heath

 Vigo Consulting (Financial Public Relations)  +44 (0)20 7390 0234

 Ben Simons

 Kendall Hill

 

The person who arranged for the release of this announcement was Rupert Verco,
Managing Director of the Company.

 

About Cobra

Cobra is defining a unique multi-mineral resource at the Wudinna Gold and Rare
Earth Project in South Australia's Gawler Craton, a tier one mining and
exploration jurisdiction which hosts several world-class mines. Cobra's
Wudinna tenements totalling 1,832 km(2), and other nearby tenement rights
totalling 1,429 km(2), contain highly desirable and ionic rare earth
mineralisation, amenable to low-cost, low impact in situ recovery mining, and
critical to global decarbonisation.

 

Cobra's Wudinna tenements also contain extensive orogenic gold mineralisation
and are characterised by potentially open-pitable, high-grade gold
intersections, with ready access to infrastructure. Cobra has 22 orogenic gold
targets outside of the current 279,000 Oz gold JORC Mineral Resource Estimate,
and several iron oxide copper gold (IOCG) targets.

 

Follow us on social media:

 

LinkedIn: https://www.linkedin.com/company/cobraresourcesplc
(https://www.linkedin.com/company/cobraresourcesplc)

Twitter: https://twitter.com/Cobra_Resources
(https://twitter.com/Cobra_Resources)

 

Subscribe to our news alert service: https://cobraplc.com/news/
(https://cobraplc.com/news/)

 

 

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