Bindi Metals has signed a binding agreement to divest its Biloela copper-gold project in Queensland to Jacaranda Natural Resources, retaining a 2% royalty and milestone-based equity. The sale will free up resources to focus on its Ravni Gold Project in Serbia, pending shareholder approval.
- Binding sale agreement with Jacaranda for Biloela Project
- Consideration includes $40,000 exclusivity fee, up to $900,000 in shares
- Bindi retains 2% Net Smelter Return Royalty
- Sale conditional on shareholder approval under ASX Listing Rule 11.4
- Bindi to focus exploration on Ravni Gold Project post-sale
Bindi Metals Divests Biloela Project to Sharpen Focus on Serbia Gold
Bindi Metals Limited (ASX:BIM) has entered a binding agreement to sell its entire interest in the Biloela Project, a copper-gold exploration package in central Queensland, to Jacaranda Natural Resources Pty Ltd. The deal includes a $40,000 non-refundable exclusivity fee already received, with further payments up to $900,000 in Jacaranda shares contingent on exploration milestones, alongside a 2% Net Smelter Return Royalty retained by Bindi.
The Biloela Project covers three exploration permits located about 90 kilometres from Gladstone and has shown promising copper and gold mineralisation from previous work. Jacaranda will assume ownership through a wholly owned subsidiary upon completion, which remains subject to shareholder approval under ASX Listing Rule 11.4 and other customary conditions.
Milestone-Based Equity and Royalty Structure
Jacaranda will issue $250,000 worth of shares to Bindi at completion, based on its IPO price, with additional shares payable if the project hits key drilling targets within five years. The first milestone requires drilling results showing at least 0.30% copper over 50 metres or 0.50% over 20 metres, triggering a further $250,000 in shares. A second milestone demands a JORC-compliant mineral resource of at least 25 million tonnes at 1.0% copper equivalent, unlocking up to $400,000 more in shares.
Jacaranda has committed to a minimum 500-metre drilling program within 12 months of completion, with follow-up expenditure of $250,000 and $750,000 linked to the milestones. Should Jacaranda fail to meet these obligations, Bindi holds a buy-back option to reacquire the project for a nominal $1.
Strategic Shift to Ravni Gold Project in Serbia
Non-Executive Chairman Eddie King highlighted that selling Biloela will allow Bindi to concentrate its exploration budget and management efforts on the Ravni Gold Project in Serbia, which remains the company’s priority. Bindi is currently progressing a drilling campaign at Ravni, targeting a 2-kilometre mineralised corridor with high-grade gold potential, with assay results expected in the coming months.
This strategic focus aligns with Bindi’s broader approach to prioritise high-potential projects in tier-one jurisdictions. Meanwhile, the company will maintain exposure to its Canadian Schryburt Lake Project through an earn-in agreement with Canamera Energy Metals, which continues to advance exploration there without near-term capital demands for Bindi.
Next Steps and Shareholder Engagement
The transaction’s completion hinges on securing shareholder approval at an extraordinary general meeting to be convened shortly. Jacaranda must also obtain conditional ASX approval confirming it meets listing requirements. The agreement includes standard warranties and conditions typical for tenement sales of this nature.
For investors, the deal offers a mix of immediate cash, potential equity upside linked to exploration success, and ongoing royalty income, while enabling Bindi to redeploy resources to its flagship gold project. The key variables to monitor will be the shareholder vote outcome and Jacaranda’s progress against the drilling and resource milestones at Biloela.
Bottom Line?
Bindi’s sale of Biloela marks a clear pivot to its Serbia gold ambitions, with milestone-based payments and royalties providing ongoing optionality amid shareholder approval uncertainty.
Questions in the middle?
- Will Jacaranda meet the drilling milestones to trigger deferred share payments?
- How will the sale proceeds and royalty income impact Bindi’s exploration budget at Ravni?
- What is the timeline for the shareholder meeting and likelihood of approval under ASX rules?