Pepinnini tanks Patron plans
PERTH (miningweekly.com) – Junior Pepinnini Lithium has abandoned its gold plans in South Australia.
The company in December last year signed a binding term sheet with Patron Resources to acquire its eight gold projects in the Gawler Craton for an acquisition price of A$1.2-million in Pepinnini shares, or a combination of shares and options.
The company said at the time that the gold acquisition was aimed at diversifying Pepinnini’s portfolio and to acquire a tenure with significant potential for gold production.
However, the ASX-listed company on Monday said that an external independent review of the project had indicated that it did not merit the initially offered price.
Pepinnini and Patron have been unable to reach a compromise as to the correct value of the assets, prompting Pepinnini to abandon its acquisition plans.
The company told shareholders that it would continue to explore other strategic investment options.
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