South Australian based Marmota Energy (ASX:MEU) has replied to an ASX query regarding a run up in share price and said that it had no information that had not been announced that would explain the price gain from $0.021 to 0.03.
The company did advise that it had said in December 2015 that it had completed a drilling program over the Widgety prospect on EL 5195 and an infill calcrete sampling program over its Westpoint Hill target on EL 5060 during the same period.
The assay results are expected in January 2016.
Interestingly, in December 2015, Marmota entered into a binding heads of agreement with a hedge fund, Asymmetric Investment Management Pty Ltd to the effect that Marmota’s $2 million offer for the Challenger Gold Mine (and related assets) is now fully funded.
The $2 million would be used to pay Kingsgate Consolidated (ASX:KCN) for the Challenger Gold Mine if accepted.
This is twice the price offered by WPG Resources (ASX:WPG) in 2015 for the same assets with other offer terms the same.
Marmota’s Westpoint Hill prospect is just 25 kilometres to the west of the mine providing potential synergies by running both the underground operations and the above ground plant.
Add to that, Marmota's discovery of a large gold anomaly at Westpoint Hill in the Gawler Craton appears to mirror how Challenger was discovered.
With established Byrnecut announced as preferred operator, it is the existing operator for Kingsgate of the underground mine at Challenger, the Marmota offer for the assets appears compelling.
Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.