ASX-listed, Marmota Limited, has made a fresh $3 million bid for ASX-listed Tyranna’s Jumbuck gold project in South Australia’s gold-rich Gawler Craton, having another, stronger go at trumping a $2.25m bid by de-listed Syngas Limited. Marmota said its offer of $2.5m cash and $500,000 in Marmota shares was vastly superior to the Syngas offer, is fully funded and now not subject to due diligence.
In what has been an evolving back and forth between the relevant parties, Marmota looks to have taken the gloves off as it seeks to have its formal offer put in front of Tyranna shareholders at its forthcoming General Meeting.
Marmota’s Chairman, Dr Colin Rose said he believed its offer was dramatically superior and a truly excellent outcome for all Tyranna shareholders.
The Jumbuck Gold Project is our immediate neighbour 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.
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 $3m instead of $2.25m, 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.
Marmota’s initial shot, a $1.3m bid, was fired across the bows of the Tyranna boardroom in May and a second $2.6m bid shot was launched as recently as July this year. The timing of the latest $3m salvo seems particularly well-timed with Tyranna having scheduled a shareholder meeting next week where it planned to present the latest offer from de-listed Syngas for consideration.
The company said its offer is worth an additional $750,000 to Tyranna shareholders with all other material terms identical.
The prize at stake is the Jumbuck project – a cluster of leases that sit between the Marmota portfolio and the dormant Challenger underground mine that is owned by the currently unlisted Barton Gold.
Tyranna previously defined 319,000 ounces of gold grading 1.1g/t gold at Jumbuck and its proximity to the Challenger mill is important, particularly given that Barton is looking to restart the mill by trucking ore from its Tarcoola open pit about 130km away.
The resource sits across six small mineral deposits amongst the 7,279 square kilometre tenement package that is Jumbuck.
The Jumbuck tenements surround the mothballed Challenger gold operations, which historically churned out over 1 million ounces of gold at a reported 6g/t gold before WPG Resources went into administration. The WPG assets are now under the control of Barton who is headed up by PARQ Capital’s Alexander Scanlon.
Formal comment from Tyranna is awaited. Watch this space?
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