Koba Resources (ASX:KOB) plans to assign the rights to its 100% interest in the Harrier Uranium Project in Newfoundland and Labrador, Canada, to Azincourt Energy (TSX-V:AAZ).
The Harrier Uranium Project is located 110km northwest of the regional hub of Goose Bay and 70km southwest of the Postville in central Labrador.
Azincourt Energy will pay C$50,000 ($56,388) to Koba, as well as issue 30 million shares in the company in three separate installments, as part of a claim option.
Following Azincourt exercising the option, Koba will be entitled to a 2% gross production royalty over the Harrier Project, half of which may be purchased back at any time for C$1 million cash.
Once the option has been exercised, Koba will also be entitled to 0.5% gross production royalty over the project, half of which may be purchased back at any time for a one-time cash payment of C$250,000 to Koba.
The funds will be used towards exploration activities at the Yarramba Project and general working capital.
Upon completion of the transaction, which is expected to be on or before 15 May, Azincourt will own 1,432 mining claims.
This transaction enables Koba to focus on advancing its flagship Yarramba Uranium Project in South Australia.
Koba CEO Ben Vallerine says this divestment provides the company with continued exposure to Azincourt’s success at the project which could crystallise value from the asset.
“Importantly, this transaction allows Koba to maintain focus on its flagship 5,000km2 Yarramba Uranium Project in South Australia, where we made three high-grade discoveries during our inaugural drilling program in 2024-25,” Vallerine says.
“These discoveries demonstrate the strong potential to discover additional uranium resources in a world-class uranium district with significant mining infrastructure already in place.”
Koba Resources is an Australian resources company focused on discovering and developing two uranium projects. The Yarramba Project, covering 4,900km2, is located in the Frome Embayment in close proximity to two operating uranium mines.
The company will be attending the RIU Sydney Resources Round-up being held from 6-8 May. Mining.com.au is an official media partner at this year’s event.
Write to Aaliyah Rogan at Mining.com.au
Images: Koba Resources
