Cobra Resources is to acquire Melbourne-based international textile and clothing group Supreme 3 through a scrip-based reverse takeover. The move will result in Cobra spinning-off its exploration and mining assets into a new company, Cobra Exploration NL. Under the arrangement, which includes a free option issue to existing Cobra shareholders and optionholders, Cobra will acquire Supreme 3 for about A$55m ($28.52m) following a capital reconstruction. Supreme 3, or associated parties, will underwrite or subscribe for a A$2.5m ($1.3m) placement of shares at 20 cents in Cobra Exploration NL, which will seek a separate listing on the Australian Stock Exchange. Cobra will transfer all its mining, exploration and investment assets (excluding cash and its investment in Global Dial Pty) to Cobra Exploration NL, which will seek a separate listing on the Australian Stock Exchange. Supreme 3 will be entitled to board representation of one director in the new Company prior to 30 June 2002.