Former tin hopeful TNT Mines (ASX: TIN) is following in the footsteps of a large number of juniors and is now seeking a future in gold.
The company, which also has uranium-vanadium and zinc projects in the US, is to acquire private company Warriedar Mining which owns two historic gold projects in Western Australia – Eureka and Warriedar.
It will also be raising $3.9 million by way of a placement.
TNT previously pinned its hopes of the Aberfoyle and Great Pyramid tin-tungsten deposits in Tasmania.
Warriedar is run by the founders of the former Spectrum Metals, which — with its high-grade but undeveloped Penny West project — was taken over earlier this year by Ramelius Resources (ASX: RMS).
Former Spectrum Metals people to strengthen board
Three ex-Spectrum people will join the TNT in key positions.
Present Warriedar chief executive officer Matthew Boyes will join TNT in the same role, while Alex Hewlett (former Spectrum chairman) and James Croser will also join the board.
Mr Hewlett, who is also a director of fast-growing gold play Black Cat Syndicate (ASX: BC8) will become TNT’s chairman and Mr Croser a non-executive member of the board.
The 27 shareholders in the private company will, between them and on a pro-rata basis according to their holdings as vendors, receive in total 29.55 million shares and 19.75 million unlisted options.
Both Eureka, 50km north of Kalgoorlie, and Warriedar in the Murchison region near Paynes Find, have seen historical gold production, have granted mining leases, untested mineralisation along strike and at depth, and already defined drill targets.
Eureka will be the initial focus for TNT. It has a JORC indicated and inferred resource of 762,000 tonnes at 1.8 grams per tonne gold for a contained 43,100oz.
It is also within trucking distance to several existing gold processing plants.
TNT executive director Brett Mitchell said the acquisition of Warriedar was an opportunity to acquire two WA gold projects that both have immediate access to infrastructure and operating gold plants.
“This presents a unique opportunity to join forces with a management team that has a very successful track record in the exploration and redevelopment of ex-production gold assets in WA,” he added.
Placement will raise $3.9m
The new directors bring with them a strong and loyal following, Mr Mitchell also pointed out.
TNT has received firm commitments totalling $3.9 million for a placement to institutional, sophisticated and professional investors.
Initial work at Eureka will focus on mineralisation below the existing open pit as well as testing to the north and south of that pit.
Warriedar has a long history of gold production.
In 1913-14 the Ironclasp mine produced a small amount at an average grade of 878.15g/t.
Three other mines operated there for short periods, and the most recent, Reids Ridge, was mined from 1937 until 1957 at an average grade of 19.77g/t.