Mineral exploration company Tyranna Resources has concluded the acquisition of Eureka gold mine in Western Australia from Central Iron Ore (CIO) for $2.56m.
The deal was signed in December last year, but Tyranna announced that a potential dispute had arisen with CIO last month regarding an issue with the proper interpretation of the relevant transaction documentation.
However, Tyranna directors announced that both the parties have resolved the dispute and concluded the deal on 3 August.
Tyranna issued of 93,205,304 shares in Tyranna at a price of $0.017 per shares totalling AUD$1,584,490.
In May, Tyranna received approvals to commence exploration and resource and reserve definition drilling of the Eureka gold project.
The company also noted that it will commence drilling operations following the completion of the transaction.
Eureka Mines, a local contractor, is currently performing mining operations at the gold project. The contractor also scheduled to extend the depth of the current open pit by approximately 20m.
The company has stored the existing ore in stockpiles on site and will transport them to the Lakewood toll milling facility.
Tyranna will receive a 4% net smelter royalty generated from the sale of any gold from this tribute mining campaign.
The Eureka Mine currently holds a plunging zone of quartz veining up to 15m wide and with a strike length of about 70m.
The Eureka gold project area was previously mined by Australian company West Coast Holdings from 1985 to 1986.
In 2002, Sherlock Bay Nickel conducted a drilling programme on the mine defining gold mineralisation considered economically accessible through a cut back of the existing pit.