Barton Gold (ASX: BGD) has announced it will acquire the Wudinna gold project in South Australia from Cobra Resources for $15 million in cash and shares. Barton Gold is a mineral exploration company focused on the discovery and development of gold deposits in South Australia. The company aims to build a portfolio of high-quality gold assets in the region.
The Wudinna project, located approximately 200 kilometres south-east of Barton’s Tunkillia gold development, includes the Barnes, White Tank, Clarke, and Baggy Green discoveries. The acquisition includes tenements granted for exploration licence applications 2024/0033, 2024/0034, 2024/0035 and 2024/0036. Exploration licence 2024/0032 (and underlying EL 5953), which hosts Barnes and White Tank as well as Cobra’s Boland rare earths project, will remain under Cobra’s ownership.
Barton anticipates the Wudinna project will add 279,000 ounces of gold to its South Australian portfolio, increasing the company’s total gold endowment in the region to 2.14 million ounces. Cobra will retain mineral rights for specific rare earths and other elements across the tenements included in the sale, while Barton will acquire all other mineral rights. Under the transaction terms, Barton will pay Cobra an initial $1 million consideration, further payments of $4.5 million on transfer of title, and contingency benefits of up to $9.5 million upon achieving certain milestones.
Barton managing director Alexander Scanlon stated that Wudinna offers significant low-cost optionality to the company’s long-term regional development objectives. He also acknowledged South Australia’s new regulatory framework permitting the sub-division of mineral tenements, which facilitated the transaction.
