PERTH (miningweekly.com) – ASX-listed Syngas has agreed to increase its offer price for the Jumbuck gold project, in Western Australia, from A$2-million to A$2.25-million, after facing a slue of competition for the asset.
A tug-of-war emerged for the asset after owner Tyranna Resources received offers from both ASX-listed Marmota and Alliance Resources, despite having signed a formal agreement with Syngas in June.
Alliance made a A$2.025-million offer for the Jumbuck asset, consisting of A$2-million in cash and a A$25 000 non-refundable payment for exclusive rights to conduct a due diligence, to combat a A$2.6-million all cash offer from Marmota.
Syngas’ original agreement with Tyranna included a cash payment of A$950 000, with the company subsequently increasing its offer consideration to A$2-million.
Tyranna on Monday announced that the Syngas offer has now increased to A$2.25-million.
Tyranna director Joe Graziano said on Monday that the increased offer price was an ‘excellent result’ for the company.
“The sale of the Jumbuck gold project will provide the necessary funds for the company to progress its exploration strategy at the Dragon & Knight nickel project,” he added.
Syngas told shareholders that to further support the acquisition, the company has entered into an unsecured loan facility agreement with AsiaPacific Businesslink, of A$1.2-million. The loan will carry a 9.25% a year interest rate, with interest to be accumulated until the loan is repaid.
The loan term will extend until the end of December next year.
Syngas’s offer for the Jumbuck project is still subject to Tyranna shareholder approval, with settlement of the acquisition expected by the end of September.