Andromeda Metals has closed the sale of its remaining 25% stake in the Wudinna Gold Project to Lady Alice Mines (LAM) and Cobra Resources.

The transaction includes a A$500,000 cash payment and A$1m in Cobra shares to Andromeda’s subsidiary, Peninsula Resources.

The sale and purchase agreement, announced in November last year, has now been finalised, with Andromeda’s subsidiary Peninsula Resources receiving A$500,000 in cash.

Additionally, 52,010,000 shares in Cobra were issued prior to the completion of the deal.

These consideration shares will be held in escrow until LAM is registered as the holder of the tenements for the Wudinna Project or until 12 months from the issue date of the shares.

Following the escrow period, the shares will be subject to standard orderly market provisions for another 12 months.

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The company also stated that the call option for the consideration shares in favour of Cobra is no longer valid as the transaction has been completed.

This marks the end of Andromeda’s involvement in the Wudinna Gold Project, which began in October 2017 when Peninsula Resources entered into a farm-in and joint venture agreement with LAM.

Under the agreement, LAM, which was later acquired by Cobra Resources, a London Stock Exchange-listed company, earned a 75% interest in the project by investing $5m in exploration.

The project spans more than 1,832km² on South Australia’s Eyre Peninsula and targets gold and rare earth element (REE) deposits.

LAM had agreed to acquire the remaining interest in the project either through a tenement transfer or by utilising the subdivision process under section 30AA of the Mining Act 1971 (SA).

In December 2023, Andromeda entered an agreement with EnviroCopper and its Environmental Metals Recovery unit to sell exploration licence EL5984, related to the Moonta copper-gold project in South Australia’s Yorke Peninsula.

The deal was made via Andromeda’s subsidiary, Peninsula Resources.