Koba to Receive 30 Million Azincourt Shares and Royalties in Harrier Uranium Deal
Koba Resources has agreed to transfer its rights in the Harrier Uranium Project in Canada to Azincourt Energy, securing cash, shares, and ongoing royalties while sharpening focus on its South Australian flagship.
- Koba assigns 100% interest in Harrier Uranium Project to Azincourt Energy
- Transaction includes cash payments, Azincourt shares, and production royalties
- Azincourt assumes existing option agreements and acquires additional mining claims
- Koba retains 2% gross production royalty on Claim Option and 0.5% on Harrier Option
- Deal frees Koba to focus on Yarramba Uranium Project in South Australia
Strategic Divestment in Canadian Uranium
Koba Resources Limited (ASX – KOB) has taken a decisive step to streamline its portfolio by assigning its rights to the Harrier Uranium Project in Newfoundland and Labrador, Canada, to Azincourt Energy Corp (TSXV – AAZ). This move allows Koba to concentrate its resources and attention on advancing its flagship Yarramba Uranium Project in South Australia, where recent drilling has revealed promising high-grade uranium discoveries.
Transaction Details and Consideration
Under the agreement, Azincourt will take over Koba’s existing option agreement for 527 mining claims and acquire an option over an additional 1,432 mining claims fully owned by Koba. In return, Koba will receive a combination of cash payments and up to 30 million Azincourt common shares, subject to TSX Venture Exchange approval and escrow conditions. The initial cash payment of C$50,000 and the issuance of 10 million shares are scheduled shortly after closing, with further share issuances planned over the next two years.
Royalties Maintain Long-Term Exposure
Importantly, Koba retains a significant stake in the future success of the Canadian assets through gross production royalties – 2% on the 1,432 mining claims and 0.5% on the original Harrier claims. These royalties provide ongoing revenue potential, with options for Azincourt to buy back half of each royalty at predetermined cash payments. This structure ensures Koba remains connected to any upside generated by Azincourt’s exploration and development efforts in the region.
Complementary Portfolio Consolidation
The Harrier Uranium Project’s proximity to Azincourt’s Snegamook Uranium Project makes this transaction a strategic consolidation for Azincourt, potentially enhancing exploration synergies and operational efficiencies. For Koba, the deal not only monetises its Canadian interests but also secures capital to fund ongoing exploration at Yarramba, where the company is optimistic about expanding its resource base in a well-established uranium district.
Looking Ahead
Completion of the transaction hinges on TSX Venture Exchange approval, expected by mid-May 2025. Koba’s Managing Director Ben Vallerine emphasised the balance struck by the deal – maintaining exposure to Canadian uranium exploration success while prioritising the development of Yarramba. This dual approach could position Koba well in the evolving uranium market, which remains sensitive to global supply-demand dynamics and geopolitical factors.
Bottom Line?
Koba’s divestment sharpens its focus on South Australia while keeping a foothold in Canada’s uranium potential.
Questions in the middle?
- How will Azincourt’s exploration progress at Harrier and Snegamook impact Koba’s royalty income?
- What are the prospects for further high-grade discoveries at Yarramba following recent drilling success?
- Could Koba consider reacquiring Canadian assets or expanding its royalty portfolio in the future?
