Australia

Broken Hill Prospecting agrees terms with Cobalt Blue for Broken Hill Cobalt Project

Broken Hill Prospecting Ltd (ASX:BPL) has agreed on terms for Cobalt Blue Holdings Ltd (ASX:COB) to acquire 100% ownership and legal title of the Broken Hill (Thackaringa) Cobalt Project.

The binding Heads of Agreement (HOA) executed between the two companies follows an Independent Expert Determination on Monday that confirmed the 30:70 respective interests in the project.

This determination has been the catalyst for further discussions between the parties with the HOA to result in the dissolution of the Thackaringa Joint Venture which holds the project.

“Delighted” with commercial outcome

BPLs shares increased almost 15% in early trade to 3.1 cents and the company said it was delighted that the parties had reached a commercial outcome.

This would “allow the development of the project with benefits accruing to shareholders of both companies”.

The agreement will provide COB with full control and continuing management of the project, which is near the traditional mining centre of Broken Hill in the far west of NSW.

HOA terms

Under the binding agreement BPL will receive:

  • $500,000 cash;
  • 9 million COB fully paid ordinary shares for 15 cents per share;
  • $1 million three-year convertible note at interest of 6% perRead More – Source