Bidders fight for Tyranna gold project

Perth-based Tyranna Resources has received three competing proposals to buy its Jumbuck gold project in South Australia, with the bidders offering cash payments of $2 million or more.

The offers are from Melbourne companies Alliance Resources and Syngas, and Adelaide-based Marmota, with the two latter companies having previously made bids for the project.

Tyranna had entered into a binding sale agreement in June with Syngas, which had offered to pay $950,000 in cash. The company had made a $50,000 deposit in April.

Syngas today raised its bid to $2 million, noting the alternative offers for the Jumbuck gold project.

That includes from Alliance, which today offered to make a $25,000 non-refundable payment for the exclusive rights to due diligence of the Western Gawler Craton joint venture – which comprise the Jumbuck project – an addition to a later cash payment of $2 million.

The 7,926 square kilometre tenements include those wholly owned by Tyranna and a number held in a joint venture with ASX-listed WPG Resources, in which Tyranna holds 71 per cent of the gold rights.

Alliance has also offered Tyranna shareholders to participate in a rights issue to raise $1 million in proportion to their respective shareholdings in Tyranna, at a discounted offer.

Meanwhile, Marmota has trumped both proposals, with the company having doubled its bid in May to $2.6 million.  

The new offer includes $100,000 cash paid within two business days of Tyranna accepting the offer, and $2.5 million in cash upon completion of the acquisition.

Tyranna, however, said it was not currently in a position to consider alternative proposals, noting its obligations under the Syngas agreement.