Tyranna Resources says it is not currently in a position to consider Marmota Limited’s bid for its Jumbuck gold project in South Australia’s gold-rich Gawler Craton after taking legal advice that will see it first deal with an earlier offer from ASX-listed Syngas that has been slow to settle. Whilst the Marmota bid appears to have fewer conditions and at face value could be a superior offer, Tyranna said it was compelled by binding exclusivity obligations to first deal with the Syngas offer.
The Syngas deal was initially announced back in October 2019 and has been brewing for the last seven months without settlement, however Syngas paid a $50,000 deposit to secure binding exclusivity terms over the deal.
The balance of the consideration, $950,000 is due when the deal closes.
Tyranna said it was working with Syngas to finalise a definitive share purchase agreement to allow the sale of the Jumbuck gold project to proceed however the Syngas offer is still subject to Tyranna shareholder approval.
The project pulls together a cluster of leases that sit between the Marmota portfolio and the dormant Challenger underground mine that is owned by the unlisted Barton Gold, suggesting Marmota may not be out-played yet if a regional deal can be done that involves Barton’s mothballed mine at some stage.
Whilst Tyranna is insistent on not being in a position to consider alternative offers at this time, the passage of time may yet play into Marmota’s hands, particularly if Tyranna’s shareholders reject the Syngas offer.
Tyranna has firmly set its sights on advancing its exciting Dragon and Knight nickel projects that lie about 30 to 40 kilometres east of St George Mining’s Mt Alexander project in the Goldfields of WA and it is keen to quit Jumbuck to focus entirely on its WA assets.
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By Matt Birney
