BlueBird Battery Metals Inc.'s stock jumped by more than 32% in midday trading on June 7 after it signed a letter of intent to acquire Australian explorer Oberon Gold Pty. Ltd. from Providence Gold & Minerals Pty. Ltd. and two other sellers for cash and shares.
Oberon Gold holds the high-grade Sandy Point cobalt property and the polymetallic Reedy Creek property in New South Wales.
BlueBird is required to pay C$245,000 and issue C$1.2 million worth of shares to the sellers over a two-year period. The company will also grant the sellers a 1% net smelter royalty, with each half able to be repurchased for C$350,000.
Sandy Point spans 202 square kilometers in the Bungonia Battery Metal Cobalt District and includes the polymetallic Greendale project as well as other prospects. Previous sampling on the property returned grades of up to 1.75% cobalt from 38 rock chips, indicating potential for the discovery of a high-grade or near-surface cobalt resource.
Reedy Creek covers 85 square kilometers in the Lachlan Fold Belt and includes the Reedy Creek Mine, Endevour 1 and Kala Gold prospects. Highlights from previous drilling include a 9.5-meter interval at 1.45% copper from a depth of 34.1 meters, and a 28.3-meter interval at 0.36% copper, 0.10% lead and 0.10% zinc from 41.4 meters.
BlueBird, formerly known as Golden Peak Minerals, recently outlined plans for a corporate rebranding to reflect its focus on the development of battery metals, primarily cobalt and nickel.
