(Alliance News) - Cobra Resources PLC said Monday it has signed a equity agreement with drilling contractor Hagstrom Drilling Pty Ltd, who will provide reverse circulation drilling services at the Wudinna gold project in Australia.
Hagstrom has agreed to a fixed price contract for the Wudinna drilling programme, and has also agreed to take 33% of the fixed cost as shares in Cobra.
"This is a fantastic outcome, and a great vote of confidence in the Wudinna gold project. It will reduce the cash cost of drilling at Wudinna, and will also reduce the cost risk of the proposed exploration programme. We look forward to this Agreement being the start of a great relationship between Cobra and Hagstrom," said Director Craig Moulton.
Shares in the miner have been suspended in London since March, when it agreed to acquire Lady Alice Trust Pty Ltd, which is the owner of the Prince Alfred licence, also in Australia.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Cobra Resource (COBR)