Mineral Resources has bought 10.8 per cent of Perth-based explorer and developer Barra Resources’ shares in a deal worth $2 million.
Barra is currently working on a pre-feasibility study (PFS) with joint venture (JV) partner Conico at the Mt Thirsty cobalt oxide project near Norseman, Western Australia. The company hopes to create cobalt primarily for the emerging electric vehicle battery market. Barra’s other projects include the 100 per cent-owned Burbanks gold project and Phillips Find gold project located near Coolgardie.
The settlement of 57,142,857 fully paid ordinary shares at a 5-day volume weighted average price (VWAP) of 3.5 cents per share is expected to be completed today.
The purchase will make MinRes Barra’s second largest shareholder following FMR Investments, which holds a 17.3 per cent share in the company.
“This investment by MinRes adds significant credibility to the quality of Barra’s projects, board and management,” said Barra managing director Sean Gregory. “Barra is now fully funded through to the completion of the Mt Thirsty PFS and beyond.”
MinRes managing director Chris Ellison also commented on the purchase, explaining that the company looked forward to offering input and support to Barra once it enters production.