Alliance Resources Ltd. said Sept. 23 that it is acquiring a 51% equity stake in Tyranna Resources Ltd.'s Wilcherry gold project in South Australia for A$2 million.

Wilcherry comprises six exploration licenses covering 1,074 square kilometers.

After acquiring the 51% stake, both parties will contribute to expenditure in line with their equity in the project, or dilute using a standard dilution formula. Alliance will determine the exploration work needed on the project and ensure the tenements remain in good standing until it delivers to Tyranna a feasibility study.

Should either party's equity fall to 10% or less, the majority party will negotiate to buy out the minority party's interest in the project.

If Alliance proceeds with the purchase, it may subscribe for not more than 19.9% of Tyranna's issued share capital.