Tyranna Resources Limited has agreed to acquire the private company US Cobalt Pty Ltd ('US Cobalt'), the owner of the Goodsprings Cobalt and Base Metals Project, located in the State of Nevada, USA. The acquisition will be subject to shareholder approval at a general meeting of shareholders to be held on 21 September 2018 and a notice of meeting will be sent to shareholders today.
The Company previously announced that it has entered into a binding option agreement to acquire US Cobalt (refer ASX announcement 22 March 2018) and the acquisition forms part of Tyranna’s diversification strategy, aimed at capitalising on the battery minerals revolution which has seen the rapid rise in the LME price of Cobalt from US$23,000/ton in March 2016 to a high of US$95,000/ton on 21 March 2018 (Cobalt traded at US$64,000 on 17 August 2018).
Tyranna Managing Director, Bruno Seneque stated, “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 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.”