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LONDON (Alliance News) - Cobra Resources PLC on Thursday said it has agreed to buy a historic copper mine, as well as interests to other tenements, in South Australia.
Cobra is currently a cash shell, which has been looking for a resources project since joining the London Stock Exchange last November.
Since the acquisition is classified as a reverse takeover under AIM rules, shares have now been suspended from trading.
The projects acquired are 100% of licence 6016, known as the Prince Alfred licence, containing the eponymous copper mine, from Lady Alice Trust.
Cobra has also bought an entitlement to earn a 75% interest in five "large" tenements near Wudinna in South Australia, in an agreement with ASX-listed Andromeda Metals Ltd and Peninsula Resources Ltd.
The Prince Alfred mine produced during the 1870s, before closing, and then re-opening again between 1888 and 1909. In the late 1960s and early 1970s, tailings at the mine were tank leached to recover 600 tonnes of copper.
No modern exploration has occurred at the site, Cobra said.
The Wudinna tenements are in the Central Gawler gold province, and cover 1,931 square kilometres of underexplored land.
Three deposits have been found at Wudinna so far: Barns was found in 2000, White Tank in 2003, and Baggy Green in 2004.
Chief Executive Rolf Gerritsen said: "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 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."
Cobra will pay AUD1,000 for the entire share capital of Lady Alice Mines Pty Ltd, the trustee for Lady Alice Trust, in Cobra shares. Sellers also will get options on further Cobra shares exercisable on certain thresholds being reached.
Lady Alice Mines then will fund up to AUD5 million in a staged earn-in over six years, to earn up to 75% of Wudinna.