TNT Mines swaps Tassie tin for gold company stake
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Special Report: TNT Mines (ASX:TNT) is swapping its tin and tungsten projects in Tasmania for an equity investment in a new Australian gold company.
TNT Mines (ASX:TIN) has executed revised terms for the sale of the Tasmanian assets to Canadian company TinOne Resources to bring forward future annual payments under the sale deal.
The sale agreement for the Aberfoyle and Great Pyramid tin-tungsten assets in north-eastern Tasmania was signed last October and was for $1.2m, with payments contingent on annual renewals for the project over 4 years and a successful IPO of the assets.
Under the revised deal, TNT Mines will receive $200,000 cash and $400,000 shares in a new Eastern Australian gold mining company that will seek to list on a soon-to-be-named stock exchange.
The new company is being formed from a merger of TinOne and a private Australian gold company.
“Gold equities have performed very well recently, and we look forward to giving shareholders significant exposure to that sector through this transaction,” executive chairman Brett Mitchell said.
The merged company will have a well-blended project mix that capitalises on strong market interest in Australian gold, together with its Australian tin projects.
TNT said it supports the proposed transaction and the strategy to take a material equity position in the new eastern Australian-focused gold vehicle.
TinOne has already paid a $100,000 deposit to TNT Mines for the Tasmanian assets.
The Canadian company has recently inked an agreement with a private group to acquire the Panama gold project in north-eastern Tasmania, which covers the historic Lisle goldfield.
The Lisle goldfield has produced 300,000 ounces of gold, making it Tasmania’s second most significant goldfield after Beaconsfield.
TinOne has experienced exploration success with Toronto-listed Vizsla Resources, which owns the Panuco silver project in Mexico.
TinOne was formed to capitalise on electric vehicle applications of tin and owns some tin exploration projects in NSW.
This story was developed in collaboration with TNT Mines a Stockhead advertiser at the time of publishing.
This story does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.