Koba Raises $4.35m to Acquire 432km² High-Grade Tin-Tungsten Projects in Queensland

Historic Tin Field Acquisition

Koba Resources Limited (ASX – KOB) has announced a strategic acquisition of two high-grade tin-tungsten projects located approximately 100 kilometres southwest of Cairns in North Queensland. The Stannary Hills and Mt Garnet projects span a combined 432 square kilometres within the Herberton Tin Field, a region historically renowned as Australia’s second largest tin producer with over 75,000 tonnes extracted from more than 2,400 mines.

This acquisition grants Koba exclusive rights to 100% ownership of these projects, which host numerous historic mines with substantial unmined mineralisation. Notably, the Stannary Hills project includes a 1.3-kilometre section of the Kitchener Trend, where seven historic mines collectively produced around 120,000 tonnes of ore at an average grade of 2.3% tin. Similarly, the Mt Garnet project features the Gilmore Mine, which yielded 26,169 tonnes at an impressive 7.6% tin grade.

Exploration Potential and Drilling Plans

Despite the rich mining history, both projects remain underexplored, with limited drilling conducted since mining ceased decades ago. Recent drilling results highlight the presence of both high-grade tin mineralisation and extensive lower-grade bulk-tonnage deposits, offering multiple avenues for discovery. Tungsten, a critical metal alongside tin, has also shown promising assay results, including rock chip samples with up to 15.3% tungsten and historical drill intersections confirming significant tungsten mineralisation.

Koba plans to commence initial field programs in the fourth quarter of 2025, focusing on geological mapping, rock chip sampling, and prioritising drill targets. The first phase of drilling is scheduled for early 2026, post the wet season, aiming to test high-priority zones along the Kitchener and Atlanta Trends at Stannary Hills and key prospects at Mt Garnet.

Capital Raising to Support Growth

To fund the acquisition and exploration activities, Koba has secured firm commitments for a $4.35 million placement at $0.05 per share from a mix of new and existing institutional and sophisticated investors. The placement includes attaching options exercisable at $0.08, expiring in June 2028, and is subject to shareholder approval expected at the company’s Annual General Meeting in late November 2025. Board members have also participated, subscribing for $70,000 worth of shares.

Funds raised will cover acquisition costs, initial drilling programs at the tin-tungsten projects, ongoing exploration at Koba’s Yarramba Uranium Project, and general working capital. The company is well-positioned to advance its exploration portfolio amid robust market conditions.

Market Context and Strategic Timing

The timing of this acquisition aligns with historically high tin prices, currently trading above US$35,000 per tonne. Supply disruptions in major producing countries such as Myanmar, Indonesia, and the Democratic Republic of Congo, combined with rising demand driven by electronics, clean energy technologies, and automation, have created a global tin market deficit. Tungsten, also critical for industrial applications, complements the strategic value of these projects.

Koba’s Managing Director, Ben Vallerine, emphasised the opportunity to explore and potentially expand sizeable tin and tungsten resources at a time when market fundamentals are exceptionally favourable. The company’s ongoing success at the Yarramba Uranium Project further underscores its growing footprint in critical minerals exploration.