- Alliance Resources (AGS) has submitted an offer to acquire Tyranna Resources’ interest in the Western Gawler Craton Joint Venture in South Australia
- The joint venture comprises the Jumbuck Gold Project, which hosts an inferred mineral resource of 219,000 ounces of gold
- Alliance intends to pay a total of $2.025 million in cash for the acquisition and offer Tyranna’s shareholder the option to acquire a certain amount of Alliance’s shares at a substantial discount
- The offer comes after an initial proposal from Syngas Energy to acquire the joint venture, which outlined a deal worth $950,000
- Alliance Resources shares are up 6.25 per cent and trading for 17 cents
Alliance Resources (AGS) has submitted an offer to acquire Tyranna Resources’ interest in the Western Gawler Craton Joint Venture in South Australia.
The Western Gawler Craton Joint Venture and its surrounding tenements — which together comprise the Jumbuck Gold Project — are 100 per cent owned by Half Moon and Trafford Resources, both of which are wholly owned subsidiaries of Tyranna Resources.
Located in the southern Gawler craton, the Jumbuck Gold Project is thought to host an inferred mineral resource of 219,000 ounces of gold with the potential for additional resources at a number of identified targets.
Under the terms of Alliance’s offer, the company would pay a $25,000 non-refundable payment to Tyranna for an exclusive right to complete due diligence on the Jumbuck project, along with a $2 million payment following the satisfaction of all necessary conditions.
In addition, Alliance will offer Tyranna’s shareholders a non-renounceable right to purchase the company’s shares up to a value of $1 million at a heavily discounted price.
Alliance’s proposal follows a share and asset sale agreement between Tyranna and Syngas Limited on June 29, under which Syngas offered to acquire the Jumbuck Gold Project for a total of $950,000.
As such, Alliance’s offer remains subject to Tyranna’s shareholder voting against the offer from Syngas or, alternatively, a failure on behalf of Syngas to execute the agreement.
Alliance says that it’s confident it has the geological and exploration expertise to rigorously explore the Jumbuck project and recreate a similar level of success that was seen at its nearby Wilcherry Hill Project.
Alliance Resources shares are up 6.25 per cent and trading for 17 cents at 1:29 pm AEST.