Barton Gold Secures 279,000oz Wudinna Project in $15M Deal
Barton Gold Holdings has entered binding terms to acquire the Wudinna Gold Project in South Australia, adding 279,000 ounces of gold resources to its portfolio. The $15 million transaction, largely settled in shares and milestone payments, awaits Cobra Resources shareholder approval.
- Acquisition of 279,000oz gold resource at Wudinna, South Australia
- Total consideration up to $15 million, mostly in Barton shares and milestone payments
- Transaction subject to Cobra Resources shareholder approval
- Wudinna located near Barton’s Tunkillia project, enhancing regional portfolio
- Contingent payments linked to exploration and production milestones
Strategic Expansion in South Australia
Barton Gold Holdings Limited (ASX – BGD) has announced binding terms to acquire the Wudinna Gold Project from Cobra Resources PLC, a move that significantly bolsters its South Australian gold development portfolio. The project adds an estimated 279,000 ounces of gold resources, positioning Barton to advance its regional growth strategy in the Eyre Peninsula.
Located approximately 200 kilometres southeast of Barton’s existing Tunkillia Gold Project and 200 kilometres west of Whyalla, the Wudinna project comprises several deposits including Barns, White Tank, Clarke, and Baggy Green. Together, these deposits hold a combined JORC-compliant mineral resource estimate of 5.81 million tonnes at 1.5 grams per tonne gold, equating to 279,000 ounces.
Deal Structure and Consideration
The total consideration for the acquisition is up to $15 million, predominantly settled through Barton equity issuance and contingent milestone payments. Initial payments include $1 million upon granting of new tenements, with a further $4.5 million payable upon transfer to Barton. Additional contingent payments of up to $9.5 million are tied to exploration success and production milestones, reflecting Barton’s confidence in the project’s potential.
Importantly, the transaction is subject to approval by Cobra Resources shareholders at an extraordinary general meeting expected in July 2025. Completion will also depend on regulatory approvals for the subdivision and transfer of exploration licenses, a process facilitated by South Australia’s new mineral tenement framework.
Regional Synergies and Growth Potential
Barton’s Managing Director Alexander Scanlon highlighted the strategic value of the acquisition, noting that Wudinna offers “significant low-cost optionality” to the company’s long-term development objectives. The addition of Wudinna’s resources increases Barton’s total South Australian gold mineral resources to over 2.14 million ounces, reinforcing its position as a leading regional gold developer.
The deal also exemplifies the benefits of South Australia’s evolving regulatory environment, which has enabled the subdivision of mineral tenements and facilitated transactions that might otherwise have stalled. Barton’s existing projects, including Tunkillia, Challenger, and Tarcoola, complement Wudinna, potentially allowing for operational efficiencies and shared infrastructure.
Looking Ahead
While the acquisition promises to enhance Barton’s resource base and development pipeline, the company will need to navigate the final shareholder approval and regulatory processes. The contingent milestone payments introduce an element of performance risk but also align incentives for successful project advancement. Investors will be watching closely for updates on the Cobra shareholder vote and subsequent integration plans.
Bottom Line?
Barton’s Wudinna acquisition marks a pivotal step in its South Australian expansion, with shareholder approval and milestone delivery now in focus.
Questions in the middle?
- Will Cobra shareholders approve the Wudinna sale as anticipated?
- How quickly can Barton integrate Wudinna into its existing project portfolio?
- What exploration or production milestones will trigger the largest contingent payments?
