Tyranna Resources accepts $3m offer for its Jumbuck gold project
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Marmota has entered into a formal sale and asset agreement with Tyranna Resources for its Jumbuck gold project which is located adjacent to Marmota’s exploration ground.
Marmota’s offer breaks down into $2.5m cash and $500,000 worth of its company shares.
“The Jumbuck gold project is our immediate neighbour in the Gawler Craton. It is our backyard. Our exploration team know the ground,” Marmota chairman, Dr Colin Rose, said.
“The sale price is three times the amount originally offered, and we believe is also an excellent outcome for Tyranna shareholders,” he added.
A bidding battle erupted for the Jumbuck gold project in July, when Tyranna Resources received three separate offers for the asset.
The July offers included one from Alliance Resources (ASX:AGS) valued at $2.025m plus the opportunity to participate in a share issue in Alliance valued at $1m.
Alliance Resources has its Wilcherry gold project in the southern part of the Gawler Craton, 45km north of Kimba in South Australia.
The company had acquired Wilcherry from Tyranna Resources for $1.5m in cash in 2019.
Marmota Limited also submitted an initial offer for Jumbuck at $2.6m at the end of July.
Around the same time, Syngas Limited (ASX:SYS) increased its offer price for the asset to $2.25m which was endorsed by Tyranna Resources’ board in July.
Syngas offered to buy the Jumbuck gold project for $950,000 cash back in October 2019. The company delisted from the ASX in August.
The Jumbuck gold project comprises tenements in the Western Gawler Craton, a prolific gold-bearing region in South Australia, that includes the Challenger gold mine.
“The sale of the Jumbuck gold project will provide necessary funds for the company to progress its exploration strategy at the Dragon and Knight nickel project,” Tyranna Resources director, Joe Graziano, said.
Tyranna Resources has started an exploration program at its Dragon and Knight copper-nickel project in WA, focused on two targets, the Lightning Gossan prospect and Bullseye anomaly.
Last week, Tyranna Resources’ shareholders at the company’s annual meeting voted to terminate its original agreement to sell the Jumbuck gold project to Syngas Limited.
The proposal to sell Jumbuck to Syngas was contingent on Tyranna Resources shareholders’ approval.