PERTH (miningweekly.com) – Juniors Tyranna Resources and Alliance Resources have formed a strategic joint venture over the Wilcherry Hill project, in South Australia.
Under the agreement, Alliance would pay A$2-million in cash for a 51% stake in the project, and would also subscribe for shares in Tyranna in order to become a cornerstone investor.
Alliance could acquire a stake of up to 19.9% in Tyranna.
The share placement would only be undertaken once Tyranna has received shareholder approval, and the issue price would be equal to 95% of the volume weighted average price calculated over the past 30 days before the day on which Alliance provides the subscription funds for those shares.
Alliance would also have the right to appoint one director to the Tyranna board, once it has acquired a shareholding of at least 10%.
“This agreement with Alliance comes at an opportune time, allowing us to focus on the Jumuck gold project, where we are currently drilling our new gold discoveries at the Greenewood and Campfire Bore prospects,” said Tyranna MD Bruno Seneque.
“Alliance, whose chairperson is a major shareholder, is a well-funded and an experienced explorer in South Australia. We are excited to welcome Alliance as our partner and look forward to unlocking the full multi-mineral potential of Wilcherry Hill.”
The project, which is prospective for copper, zinc, lead, silver, iron, tungsten and uranium, would now become Alliance’s flagship project.
The company said on Friday that it would initially focus on exploring for gold and tin.