TNT Mines (ASX:TIN) to acquire Mt Ida Gold & Copper Project, shares gain upto 23%

Highlights

  • TNT Mines has concluded a non-binding agreement with Ora Banda Mining Ltd to acquire the Mt Ida gold/copper project.
  • Mt Ida Gold Pty Ltd, is a fully owned subsidiary of Ora Banda Mining Ltd.
  • The shares of the stock posted huge gains on the ASX.

The share price of the mining exploration company TNT Mines Limited (ASX:TIN) closed 20% strong at AU$0.205 per share today after the Company revealed via it has entered into a non-binding agreement with Ora Banda Mining Ltd for the proposed acquisition of 100% of the issued capital in Mt Ida Gold Pty Ltd.

Mt Ida Gold Pty Ltd, is a subsidiary of Ora Banda Mining Ltd. Besides, Mt Ida Gold Pty Ltd is also the holding Company of the Mt Ida Gold Project, which comprises 19 tenements in the historical Mt Ida gold mining district. The Project Tenements, spread over an area of 155kmsq and consisting of the historic Timoni Gold Mine along with other mines, have resulted in the production of over 300,000 ounces of gold at a head grade of 17.2 g/t Au.

The total resources of the Mt Ida project include 318,000t @13.8g/t of gold for 141koz.

At the beginning of this month, TNT Mines entered into a non-binding agreement with OBM to enter into exclusive discussions concerning an offer to acquire the Mt Ida Asset . As per the offer letter, TNT’s acquisition of the Mt Ida Project is for a one-off cash payment of AU$11 million, with completion occurring subject to certain conditions.

Today’s announcement also revealed that TNT has finished a strongly supported capital raising, having secured binding loan commitments for AU$15 million.

Bottomline:

The acquisition and capital raise will be transformative for TNT. For TNT mines, the acquisition will bring in a project with a standardised quality high-grade gold resource. Thus, this deal will add more value to the mining exploration Company.

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