Sipa Resources Takes Full Ownership of Barbwire Terrace Project

Key Highlights

• Sipa Resources Limited (ASX: SRI) has acquired 100% ownership of the Barbwire Terrace Base Metal Project from Buru Energy Limited.
• Transaction includes a 0.6% Net Smelter Return royalty payable to Buru, with a buyback option for $600,000.
• Barbwire Terrace, located in the Kimberley region of Western Australia, targets Mississippi Valley-style zinc-lead-silver deposits.
• Multiple exploration targets confirmed for follow-up as part of Sipa’s growth strategy.

Sipa Resources Limited (ASX: SRI) has solidified its position as the sole owner of the Barbwire Terrace Project by acquiring Buru Energy’s 50% stake. This strategic move follows Buru’s decision to focus on its Rafael Hydrocarbon Project and monetize non-core assets under its Battmin subsidiary.

Under the terms of the Sale and Purchase Agreement (SPA):

• Buru receives a 0.6% Net Smelter Return royalty from future production on the project tenements.
• Sipa Resources Limited (ASX: SRI) retains the right to purchase this royalty for $600,000.

Sipa Resources Limited (ASX: SRI) Managing Director Andrew Muir expressed gratitude for Buru’s collaboration during the joint venture and reiterated the company’s commitment to advancing exploration in the region.

Strategic Importance of Barbwire Terrace

The Barbwire Terrace Project holds significant potential, with exploration efforts targeting large-scale zinc-lead-silver deposits similar to those on the Lennard Shelf. Previous exploration, including diamond drilling, has validated multiple high-priority targets for follow-up evaluation.

The acquisition aligns with Sipa Resources Limited (ASX: SRI) strategic focus on building a robust portfolio of resource projects, enhancing its ability to conduct exploration without joint venture constraints.

Sipa’s Broader Exploration Portfolio

In addition to Barbwire Terrace, Sipa Resources Limited (ASX: SRI) has a diversified portfolio of exploration assets across Australia:

• Paterson North Project: Targeting copper-gold mineralisation near Rio Tinto's Winu discovery.
• Skeleton Rocks Project: Exploring for gold, lithium, and Ni-Cu-PGE deposits in underexplored greenstone units.
• Wolfe Basin: Hosting sedex-style base metal targets with extensive anomalies over an 80km prospective horizon.
• Warralong Project: Located in the Pilbara region, targeting intrusion-related gold and lithium-tin-tantalum mineralisation.

This portfolio underscores Sipa Resources Limited (ASX: SRI) commitment to identifying high-value deposits across precious, base, and specialty metals.

Looking Ahead

With full control of the Barbwire Terrace Project, Sipa Resources Limited (ASX: SRI) is poised to intensify exploration activities and unlock the project's potential. The company’s strategic approach, combined with its proven track record in exploration, positions it to create significant value for shareholders.