Sipa Resources has acquired Buru Energy's 50% stake in the Barbwire Terrace Project, gaining 100% ownership and full operational control. The deal includes a 0.6% Net Smelter Return royalty, positioning Sipa to advance exploration of promising zinc-lead-silver targets in Western Australia.
- Sipa Resources acquires remaining 50% of Barbwire Terrace Project from Buru Energy
- Consideration structured as a 0.6% Net Smelter Return royalty with buyback option
- Project targets Mississippi Valley style zinc-lead-silver deposits in Kimberley region
- Sipa plans to prioritise and test multiple prospective targets following acquisition
- Acquisition aligns with Sipa’s broader strategy to consolidate and advance base metal assets
Sipa Moves to Full Ownership
Sipa Resources Limited (ASX: SRI) has taken a decisive step to consolidate its position in the Barbwire Terrace Base Metal Project by acquiring the remaining 50% interest held by Buru Energy Limited (ASX: BRU). This move grants Sipa 100% ownership and control over the project, located in the mineral-rich Kimberley region of Western Australia.
The acquisition was formalised through a Sale and Purchase Agreement with Battmin Pty Ltd, a Buru Energy subsidiary responsible for battery minerals exploration. Rather than a traditional cash payment, Sipa agreed to grant a 0.6% Net Smelter Return (NSR) royalty on future production to Battmin, with an option to buy back the royalty for $600,000. This structure allows Sipa to preserve capital while securing full operational control.
Strategic Significance of Barbwire Terrace
Barbwire Terrace targets Mississippi Valley type zinc-lead-silver deposits, a style of mineralisation known for its economic viability and scale. The project lies within the Fitzroy Trough, an area that hosts significant base metal deposits such as those on the Lennard Shelf. Previous exploration, including proof-of-concept diamond drilling conducted under the joint venture, has confirmed multiple prospective targets warranting further investigation.
With full ownership, Sipa can now streamline decision-making and accelerate its exploration program. Managing Director Andrew Muir highlighted the collaborative history with Buru Energy and expressed optimism about the project’s potential, noting that recent work has validated several promising targets.
Broader Portfolio Context
This acquisition fits within Sipa’s broader strategy of building a diversified portfolio of precious and base metal projects across Western Australia and South Australia. Alongside Barbwire Terrace, Sipa is advancing other projects such as Paterson North, targeting copper-gold mineralisation, and Skeleton Rocks, prospective for gold, lithium, and nickel-copper-platinum group elements.
By consolidating ownership of Barbwire Terrace, Sipa enhances its leverage over a project with demonstrated exploration upside, potentially positioning itself as a more attractive partner or acquirer in the base metals sector. The royalty agreement also aligns incentives with Buru Energy, which is refocusing on its hydrocarbon assets.
Looking Ahead
As Sipa refines and prioritises targets at Barbwire Terrace, the market will be watching closely for drill results and any indications of resource definition. The company’s ability to manage exploration expenditure while advancing multiple projects will be critical to sustaining momentum and shareholder value.
Bottom Line?
Sipa’s full ownership of Barbwire Terrace marks a pivotal moment, setting the stage for focused exploration and potential value creation in the zinc-lead-silver space.
Questions in the middle?
- What are the timelines and budget for upcoming exploration programs at Barbwire Terrace?
- How might the 0.6% NSR royalty impact Sipa’s project economics if production commences?
- Could Sipa’s consolidation signal further acquisitions or partnerships in the base metals sector?