PERTH (miningweekly.com) – Junior Marmota has made a A$1.3-million competing offer to fellow-listed Tyranna Resources to acquire its Jumbuck gold project, in Western Australia.
Tyranna in October of last year inked a term sheet with Syngas for the proposed sale of the Jumbuck gold project for A$950 000 in cash. Under the terms of the agreement, Syngas would have a seven-month period to exercise its option over the gold project.
Marmota said on Thursday that its own offer would consist of a A$1-million cash payment and an additional in-specie payment of A$300 000 worth of Marmota shares, which would be issued directly to the shareholders of Tyranna.
Marmota argued that its offer was superior to the Syngas offer, exceeding Syngas’ offer price by 30%, and provided Tyranna shareholders with continued upside to potentially benefit from their prior investment in the Jumbuck project. The Tyranna shareholders would also benefit from Marmota’s existing discovery programmes in both gold and uranium.
Marmota has requested a ten-day period in which to conduct a due diligence on the Jumbuck project.
“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 chairperson Colin Rose said on Thursday.
“Marmota’s offer is unequivocally superior. We look forward to bringing Tyranna shareholders along with us, issuing free shares in Marmota to Tyranna shareholders, so that they too can potentially benefit from their prior investment.”