The acquisition follows Tyranna completing due diligence after entering an option agreement in March 2018 and is part of the company’s diversification strategy into battery minerals.
Tyranna’s managing director Bruno Seneque said “This is an outstanding deal for Tyranna and our shareholders which we have secured via a scrip issue.
“Historical mining results suggest that this area holds some of the highest grade cobalt mines that can be found in the district.
“In the 1920’s the mines in this area produced approximately 20 tonnes of cobalt rich ore from copper mining and historical grades were reported between 6% and 29%.”
No modern mining techniques used
Seneque added: “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.”
The acquisition involved the issue of 141.1 million Tyranna shares at a deemed price of 1.7 cents and is subject to shareholder approval.
Approval will also be required for the issue of 30 million options, which also forms part of the consideration outstanding.