- Marmota (MEU) is not giving up the fight for the Jumbuck as it makes a $3 million offer to purchase the gold project from Tyranna Resources (TYX)
- In July, Syngas offered to purchase Jumbuck for just over $2.2 million
- The company has told the Tyranna board to inform its shareholders of the deal before they vote on Syngas’s offer next week
- This isn’t the first offer Marmota has made: earlier this year, it offered $2.6 million for the project, but did not hear back from Tyranna
- Jumbuck is the neighbour project to Marmota’s Gawler Craton project in South Australia
- On the market today, Marmota is steady and trading for 4.6 cents per share, while Tyranna is up 16.7 per cent and is trading for 0.7 cents per share
Marmota (MEU) has made a $3 million offer to purchase the Jumbuck Gold Project from Tyranna Resources (TYX).
The company is fully funded to proceed with the purchase immediately, once the formal agreement has been signed by Tyranna. Marmota has even dropped the due diligence period of the deal and is offering a mix of cash and scrip.
This isn’t the first time Marmota has put in an offer for Jumbuck: earlier this year the company offered $2.6 million, but did not hear back from Tyranna.
Notably, Marmota’s offer is superior to Syngas’s offer of $2.25 million for the project.
In July, Tyranna board withdrew the intended shareholder vote on the Syngas offer, however, the ASX stepped in and said shareholders must vote on the Jumbuck deal.
Tyranna then revealed it agreed to pay $250,000 in termination and penalty fees to Syngas if its shareholders voted against the deal, but the ASX overruled this as it was deemed an “unreasonable or coercive break fee.”
Now, Marmota has asked the Tyranna Board to notify its shareholders of the offer in time for the shareholder meeting on November 26, where voting on the Syngas offer will occur.
Why Jumbuck?
Jumbuck, formally the Western Gawler Gold Project, is located in South Australia on the western edge of the Gawler Craton.
But what’s most appealing to Marmota is the fact Jumbuck is its neighbour project in the Gawler Craton.
“It is our backyard. It is where we do our gold exploration. Our exploration team know the ground. We believe that if anyone can make it work, Marmota can,” Chairman Dr Colin Rose said.
“Marmota’s offer is unequivocally superior. It offers the same material terms and conditions as are published in respect of the Syngas offer, but paying $3 million instead of $2.25 million, involves fewer conditions precedent (including not being subject to shareholder approval), and is already funded and not requiring any capital raising or loan funding for the purchaser to complete the transaction,” he added.
On the market today, Marmota is steady and trading for 4.6 cents per share, while Tyranna is up 16.7 per cent and trading for 0.7 cents per share at 12:00 pm AEDT.