Western Australia-based Tyranna Resources is to acquire 100 per cent of Nevada-based US Cobalt.
US Cobalt operates the Goodsprings cobalt and base metal project out of Nevada’s historical Goodsprings mining district.
The company collected rock chip samples in April containing cobalt, copper, lead and zinc that returned top thresholds of 10,000 parts per million cobalt, 20 per cent lead and 30 per cent zinc, results that led to Tyranna’s interest in pursuing the company.
Historical cobalt grades from mining in the 1920s returned reported results between six to 29 per cent, according to Tyranna managing director Bruno Seneque.
“This is an outstanding deal for Tyranna and our shareholders which we have secured via a scrip issue,” he said.
“No modern mining techniques have been used here and we are confident that good exploration and mining methods will handsomely reward the company here at Goodsprings.
“The acquisition of US Cobalt adds Goodsprings cobalt and base metals project as another high value asset to Tyranna’s project portfolio and enhances our value as a diversified resources exploration and development company.”
XRF results from initial stream sediment sampling and follow-up soil sampling showed two anomalous cobalt zones at the Whale mine and Rose mine.
Tyranna has paid $100,000 cash for an exclusive option agreement and will issue 141.2 million Tyranna shares (with 25 per cent of shares subject to voluntary escrow) to US Cobalt at a price of 1.7 cents per share, which translates to a sum of around $2.4 million.
In addition, Tyranna will also issue 30 million options as part of the acquisition. The issuance of shares and options are still subject to shareholder approval.