Marmota questions Tyranna decision to continue with ‘inferior’ offer for Jumbuck

Marmota (ASX:MEU) has queried Tyranna Resources’ (ASX:TYX) ‘confusing’ decision yesterday to accept Syngas’ (ASX:SYS) revised $2.25m offer for the Jumbuck project in South Australia’s Gawler Craton.

Executive chairman Colin Rose told Stockhead that not only was Marmota’s $2.6m all-cash offer for the Jumbuck project still on the table, it still had not received any reply regarding its offer.

He said Marmota was confused as to why Tyranna was pursuing “manifestly inferior” offers when substantially better offers were already on the table.

“Marmota also does not understand why Tyranna would agree to a break fee of $250,000 to Syngas relating to its own shareholders turning down the Syngas offer, when that is a regulatory requirement of the ASX, and it is not customary for break fees to relate to regulatory requirements,” Rose added.

Syngas originally made a $950,000 offer for Jumbuck, which covers 7,926sqkm of ground surrounding the Challenger gold mine.

Challenger, which is operated by Kingsgate Consolidated (ASX:KCN), has produced 1 million ounces at 6 grams per tonne of gold since 2002.

However, the Syngas offer was trumped first by Alliance Resources (ASX:AGS), which made a $2.025m bid for the project, and then by Marmota’s $2.6m offer to pick up ground right next to its property in the Gawler Craton.

Syngas subsequently returned with the $2.25m offer – with a $250,000 break fee, that was accepted by Tyranna.

While this move has been questioned by shareholders, Tyranna noted at the end of July that the Jumbuck project was the subject of a binding sale agreement with Syngas and that it was not in a position to consider alternative offers at that time.