- TNT Mines (TIN) has entered a binding share sale agreement to acquire Vanacorp Aust and its U.S. subsidiary, Vanacorp USA
- By acquiring these companies, TNT Mines will receive the East Canyon Project in Utah, U.S.
- The project lies within the Uravan Mineral Belt, which has been a significant source of uranium and vanadium ore in the States for more than 100 years
- Following due diligence of Vanacorp and the project, the acquisition is expected to settle in the coming week
- As part of the acquisition, Vanacorp founder Peter Woods has been welcomed to the board as Non-Executive Director
- Company shares are up a steady 9.38 per cent and are currently trading for 17.5 cents each
TNT Mines (TIN) has entered a binding share sale agreement to acquire Vanacorp Aust and its U.S. subsidiary, Vanacorp USA LLC.
By acquiring these companies, TNT Mines will receive the East Canyon Project in Utah, U.S.
Following due diligence of Vanacorp and the project, the acquisition is expected to settle in the coming week.
“Our technical team has confirmed the potential of East Canyon through the due diligence process and we have moved quickly towards formal completion of the transaction,” Executive Director Brett Mitchell.
“We will now proceed with planning for the initial program of exploration following up on the high-grade samples collected in recent fieldwork and the noted occurrences of visible mineralisation in historic workings on the property,” he added.
The East Canyon Project lies within the Uravan Mineral Belt. This belt has been a significant source of uranium and vanadium ore in the States for more than 100 years.
The project spans approximately 16 square kilometres and hosts numerous historic workings.
Historical drilling from 1962 by Vanadium Corporation of America shows intercepts ranging from two feet (0.60 metres) at 0.83 per cent vanadium pentoxide and 0.127 per cent triuranium octoxide, to seven feet (2.13 metres) at 1.07 per cent vanadium pentoxide and 0.237 per cent triuranium octoxide.
Many of the historical workings remain open and are in a good condition.
Throughout 2018 and 2019, Vanacorp collected 26 samples and returned results as high as 9.21 per cent vanadium pentoxide and 0.47 per cent triuranium octoxide.
Board appointment
As part of the acquisition, Vanacorp founder Peter Woods has been welcomed to the board as Non-Executive Director.
Also, Non-Executive Director of TNT Mines Michael Jardine will resign from the board.
Company shares are up a steady 9.38 per cent and are trading for 17.5 cents each at 12:13 pm AEST.