PERTH (miningweekly.com) – A three-way tug-of-war has erupted over the Jumbuck gold project, in Western Australia, with owner Tyranna Resources fielding offers from fellow listed Marmota, Alliance Resources and Syngas.

Tyranna at the end of June inked a formal agreement with Syngas to divest of the Jumbuck gold project for A$950 000, opting to back the Syngas offer in lieu of a A$1.3-million counter offer from Marmota, which consisted of A$1-million in cash and an in-specie payment of A$300 000 worth of Marmota shares.

ASX-listed Alliance Resources this week emerged with a A$2.025-million counter offer, comprising A$2-million in cash and a A$25 000 non-refundable payment for exclusive rights to conduct a due diligence.

Alliance was also offering Tyranna shareholders the opportunity to participate in a non-renounceable rights issue to subscribe for fully paid ordinary shares in Alliance, up to a value of A$1-million in proportion to their respective holdings in Tyranna, and at a "significant discount" to the Alliance share price at the time of completion of the transaction.

The Alliance offer was subject to Ministerial and shareholder consent.

Marmota on Friday also launched a formal fully funded A$2.6-million all cash offer for the Jumbuck project, with A$100 000 to be paid within two business days of an acceptance of the offer, and the remaining A$2.5-million on the completion of the acquisition.

Marmota told its own shareholders that its offer for Jumbuck would also be subject to a number of conditions, including Tyranna shareholders voting against the current transaction with Syngas, the completion of a due diligence, and all necessary third party approvals and consents being obtained.

“The Jumbuck gold project is our immediate neighbour in the Gawler Craton. It is in 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,” said Marmota chairperson Dr Colin Rose.

“Marmota’s offer is unequivocally superior. We believe this dramatically superior offer is a truly excellent outcome for all Tyranna shareholders,” he added.

Not to be outdone, Syngas has increased its offer for the Jumbuck project, revising the purchase consideration to A$2-million.

“We note that there are other offers received by Tyranna for the Jumbuck gold project. However, these offers are subject to various conditions such as due diligence and formal share sale agreements, which does not provide certainty on completion,” said Syngas executive director David Low.

Tyranna on Friday said that it was seeking legal advice on the offers, and given the terms of the Syngas agreement, the company was not "in a position to consider alternative offers at this time".

The Syngas agreement remained subject to shareholder approval.