Koba Resources (ASX:KOB) has entered a binding agreement with EV Resources (ASX:EVR) to acquire a whole stake in two tin-tungsten projects in North Queensland.
The company has paid a $100,000 deposit with an additional $600,000 in cash to be paid upon completion of the transaction, currently awaiting approval from the Queensland Department of Natural Resources and Mines.
Approval which is anticipated to be completed within 60 days is required to transfer the respective mineral licenses.
Cygnet Capital and Bell Potter Securities are acting as joint lead managers to this placement.
Koba will acquire 100% interest in the Stannary Hills and Mt Garnet projects, covering 432km2 of tenure in the Herberton Field, which have historically produced over 75,000 tonnes of tin metal between 1880 and 1930, inside the area’s greater host of 2,400 historical tin mines.
The company intends to commence field programs across the newly acquired projects in Q4 2025, following up on a 1.3km section of the Kitchener Trend in the Stannary Hills Project where mineralisation remains open at depth and along strike, and the presence of ‘high-grade’ mineralisation at Mt Garnet.
CEO Ben Vallerine explains that the company is excited to acquire two projects in the historical Herberton Tin Field, entering into “the second largest tin production district in Australia”.
“This acquisition provides Koba an outstanding opportunity to discover sizeable tin and tungsten resources at a time when tin and tungsten prices are extremely strong with very bullish price forecasts,” Vallerine says.
Koba is raising $4.35 million through the issue of 87 million shares, valued at an issue price of $0.05 per share to help fund the acquisition.
Participants will receive one free attaching option per every two shares subscribed for in this placement, offering an exercise price of $0.08 to expire 30 June 2028.
Koba directors have agreed to subscribe for $70,000 of funds raised in this placement, following shareholder approval.
Koba Resources is an Australian explorer focused on exploring uranium projects in South Australia.
Write to Maddison Elliott at Mining.com.au
Images: Koba Resources
