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- Twenty Seven Co (TSC) has entered a binding term sheet agreement to acquire minerals explorer, Oz Gold Group
- Oz Gold owns the Mt Dimer Project in WA and the Trident Project in New South Wales
- Mt Dimer includes a mining lease and two exploration licenses and contains known high-grade mineralisation with gold grading up to 22.30 grams per tonne
- While the project presents an opportunity for an open pit operation, TSC will first aim to confirm historic results and estimating the resource potential
- The Trident Project contains numerous historic workings (including four pits) and high-grade, near-surface gold and copper
- Twenty Seven Co will have an exclusive 60-day option to acquire all of the shares in Oz Gold and will pay a non-refundable upfront payment of $200,000
- To fund the option fee, TSC will launch a $500,000 share placement to professional and sophisticated investors
- Company shares have soared 70 per cent to trade for 0.9 cents
Twenty Seven Co (TSC) has entered a binding term sheet agreement for an exclusive option to acquire Oz Gold Group who owns the Mt Dimer and Trident projects.
Oz Gold is a minerals explorer that owns the Australia-based gold-copper projects.
Mt Dimer Gold Project
Mt Dimer is located roughly 200 kilometres north of Southern Cross in the Western Australian goldfields. It comprises a mining lease (M77/515) and two exploration licenses.
Mt Dimer contains known high-grade mineralisation with gold grading up to 10.64g/t, 13.32g/t and 22.30g/t gold.
Within the mining lease, historic open-cut mining conducted in the 1990s produced around 8,500 ounces of gold. The mining lease area has also processed around 77,000 tonnes of oxide ore at 3.44g/t gold.
Remnants of oxide ore may provide an opportunity for the company to resume an open pit operation.
Twenty Seven Co’s initial priority however is on advancing the necessary exploration work to confirm historical drilling results and estimate the resource potential.
The two exploration licences support the mining lease’s prospectivity and provide additional exploration potential. One of the licences sits immediately west of the mining lease while the other is located around 80 kilometres northwest. It is underexplored but highly prospective for gold mineralisation.
The second licence is actually proximal to Ramelius Resources’ (RMS) Marda Gold Project which has JORC-compliant probable ore reserves at 1.1 million tonnes at 2.5g/t for 89,000 ounces of gold.
“Acquiring the option over the Mt Dimer and Trident Projects is an exciting opportunity for TSC, potentially delivering an advanced gold project to the company and further exploration upside,” Chairman Rob Scott said.
Trident Gold-Copper Project
The Trident Gold Copper Project, which is located 35 kilometres northeast of Broken Hill, expands the company’s footprint around Broken Hill as it complements the Midas and Mundi Mundi assets.
The project contains numerous historic workings (including four pits) and gold-copper surface occurrences. Due to the high-grade occurrences for gold and copper mineralisation, Trident gives TSC significant exploration upside.
Terms
Twenty Seven Co will have an exclusive 60-day option to acquire all of the shares in Oz Gold. In exchange, TSC will make a non-refundable option payment of $200,000 to the vendors. Once the option is exercised, TSC will cause Oz Gold to exercise the Oz Gold Option and will pay an upfront cash payment and make an issue of fully paid ordinary shares in TSC to the vendors.
However, TSC will need to complete due diligence and obtain regulatory and shareholder approval to exercise the option.
Share placement
TSC has received commitments from professional and sophisticated investors to subscribe for 100 million new shares at an issue price of 0.5 cents. The company is hoping to raise $500,000.
The issue price represents a 4.36 per cent discount to the 15-day volume-weighted average price.
Investors will be offered one free-attaching unlisted option for every two shares subscribed for, exercisable at 1.5 cents. The offer will expire on December 31 2022.
Funds from the placement will go towards the option fee and for general working capital.
Company shares have soared 70 per cent to trade for 0.9 cents at 12:16 pm AEST.
