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Tyranna, WPG resolve gold license ownership dispute in South Australia

Tyranna Resources Ltd. has agreed to drop its claim that the northern part of EL 5661 that surrounds the Challenger gold mine in South Australia and the recently granted ML 6457 form part of the Western Gawler Craton joint venture.

The company was previously disputing claims by WPG Resources Ltd. that part of an exploration license surrounding the original Challenger mine is not included in the joint venture between Tyranna and WPG subsidiary Challenger Gold Operations Pty. Ltd.

In return, WPG has agreed that ownership of the tenements under the joint venture will be transferred to Tyranna and its subsidiary, Half Moon Pty. Ltd., and a new gold exploration joint venture will be formed between the two companies and their subsidiaries.

The interests of the two parties in the new joint venture will be exactly the same as the old one, with no change to dilution provisions, WPG said Oct. 4.

The new joint venture agreement is expected to be finalized within 60 days.