Corella Resources has agreed to acquire a majority interest in the Chobe Project, expanding its footprint in Western Australia’s emerging rare earths and niobium hotspot. The acquisition is backed by a heavily oversubscribed $5 million capital raise.
- Acquisition includes 8 granted tenements and 7 applications spanning over 2,000 km2
- Project targets niobium, rare earth elements, and IOCG deposits in West Arunta
- Placement of $5 million to fund acquisition and exploration heavily oversubscribed
- Joint venture formed with Caprice Resources, Corella free carrying until mining decision
- Facilitation fee payable subject to shareholder approval
Strategic Expansion into West Arunta’s Critical Minerals Belt
Corella Resources Ltd (ASX:CR9) has taken a decisive step to deepen its presence in Western Australia’s West Arunta region by signing a binding heads of agreement to acquire a 75% interest in the Chobe Project from Caprice Resources Ltd (ASX:CRS). The acquisition, covering eight granted tenements and seven applications, spans a significant 2,000 square kilometres of highly prospective ground for niobium, rare earths, and IOCG mineralisation.
The Chobe Project’s geological features bear striking resemblance to nearby successes at WA1 Resources’ Luni Project and Encounter Resources’ Aileron Project, both of which have recently reported encouraging niobium assay results. This regional validation adds weight to Corella’s strategy to capitalise on structural and magnetic anomalies indicative of carbonatite-hosted mineralisation, a key source of critical minerals.
Acquisition Terms and Joint Venture Structure
Corella will pay an initial $2.7 million in cash to Caprice, with an additional $190,000 in shares contingent on commencing exploration activities. The deal includes a joint venture arrangement where Corella will hold 75% of the Group 2 tenements and free carry Caprice’s 25% interest until a decision to mine. This structure gives Corella operational control and funding responsibility for exploration, allowing it to direct the pace and scope of work.
Completion hinges on several conditions including due diligence, a minimum $4 million capital raise, and various consents from third parties and regulatory bodies. The company has already secured firm commitments for a $5 million placement, which is heavily oversubscribed and will be issued in two tranches, with the second tranche and associated options subject to shareholder approval.
Capital Raising and Facilitation Fee Details
The $5 million placement priced at $0.012 per share includes free attaching options exercisable at $0.02, expiring in 30 months. CPS Capital Group is acting as lead manager and broker, earning a management fee and a placing fee, plus a potential share and option package pending shareholder approval.
Additionally, a facilitation fee of $250,000 (in shares and options) is payable to Wolf Like Me Pty Ltd for introducing and assisting with the acquisition, also subject to shareholder approval. This fee arrangement is notable for its structure and the fact that Wolf is not a related party.
Positioning Amidst Regional Momentum
Corella’s Chairman Philip Re highlighted the strategic timing of the acquisition, citing the West Arunta’s emergence as a fertile province for critical minerals following discoveries by WA1 Resources and peers. The Chobe Project now represents the third largest ASX-listed landholding in the region, positioning Corella to leverage ongoing exploration successes nearby.
This move builds on Corella’s recent efforts to advance its portfolio, including earlier capital raises and exploration programs focused on other tenements such as Bonnie Rock and Earoo. The company’s ability to rapidly secure funding and expand its footprint underscores a growing investor appetite for critical minerals exposure, as seen in its prior exploration program planned for Bonnie Rock.
Bottom Line?
Corella’s acquisition and oversubscribed capital raise mark a bold push into a promising but underexplored critical minerals province, with exploration results and regulatory approvals set to shape its near-term trajectory.
Questions in the middle?
- Will Corella’s exploration confirm the Chobe Project’s potential to match nearby niobium and rare earth discoveries?
- How will the company manage the free-carry joint venture arrangement with Caprice through the exploration phase?
- What impact will shareholder approval outcomes have on the timing and scale of the placement and facilitation fee payments?