Tyranna Resources (ASX:TYX) has acquired a 75% stake in the Chinguar Gold Project, spanning 3,342km2 and located 50km northeast of Huambo, Angola’s second largest city from a local vendor.
Tyranna Managing Director David Crook explains that the Chinguar acquisition is a strategic move to buy into a large holding amid the global demand for gold.
“The number of Garimpo workings targeting shallow gold within the project area provides credibility to the likelihood that the project will have areas with deeper, primary sources of gold wide-open for significant discovery,” Crook says.
“The pro-active Angolan government mineral exploration-related departments, MIREMPET and IGEO, have recently completed geological mapping and geophysical surveys over much of the country, providing datasets which have facilitated our targeting and on-ground fieldwork greatly.”
As part of the transaction, the company’s subsidiary Luvulu has acquired a 75% shareholding in the Angolan vendor in exchange for 2025 surface tax payable by vendor AGFC valued at US$39,000 ($60,098), along with a cash payment of US$32,000 to AGFC.
The cash payment is a reflection of the vendor’s costs incurred at the project so far.
Luvulu will manage both the project, as well as AGFC, while the vendor’s shareholders will retain a 25% stake.
The subsidiary will be eligible to elect for continued participation at Chinguar on the return of a first pass work program and favourable assay results.
Luvulu will be required to issue shares to remaining AGFC holders, dividing the AUD rate of US$88,000 to the higher of $0.005 per share, or the 10-day volume weighted average price, to a maximum of 27.5 million shares.
Along with assessing the Garimpo workings where gold mineralisation may be shedding from, the company will conduct a sediment sampling program to test anomalous areas as they appear.
Tyranna then intends to generate targets from drilling after conducting and interpreting geochemical and geophysical studies.
Located 50km northeast of Huambo in Angolo, the Chinguar Project is prospective for its Garimpo workings, which are known to often extend longer than 1.5km each.
On the tail of a 10.09% monthly increase, the price of gold has fallen today (22 October) by 5.35% to US$4,125, according to Trading Economics.
Write to Maddison Elliott at Mining.com.au
Images: Tyranna Resources
