Based on Friday's closing price of A0.01c, Aus Tin was worth a mere $12.7 million, but its deal with UK-based First Tin will see it bank $1.35 million cash and shares in a company that aims to list of the main board of the London Stock Exchange early in 2022.

 

The transaction is estimated to be worth $34.3 million, according to Aus Tin.

 

The fully-permitted Taronga has resources of 36.3 million tonnes at 0.16% tin containing 57,200t of tin, and has some of the largest undeveloped tin reserves. Aus Tin has been hoping to conduct bulk sampling.

 

The junior will be issued 60 million shares in the new company, or a minimum 22.6% of First Tin, based on a minimum £20 million IPO priced at 30p - and the deal comes with an anti-dilution mechanism if the listing price is lower.

 

The shared will be escrowed for 12 months - unless the shares trade substantially in excess of the anticipated issue price.

 

As long as Aus Tin owns at least 10% in First Tin the junior will have a board seat, with Nick Mather expected to fill the spot.

 

Aus Tin acting CEO Robert Kidd will shift into a role as Taronga's project manager.

 

First Tin already has "substantial tin assets" in Germany, Aus Tin said.

 

Founded as Treliver Minerals in 2012, and was then known as Anglo Saxony Mining until earlier this year.

 

It has the Tellerhauser and Gottesberg projects, and is hunting for other assets in low-risk OECD nations. 

 

Tellerhauser has resources of 20Mt at 0.65 tin for 124,000t tin in the skarn packages and 5.6Mt at 0.33% for 19,000t schist sequence. The adjacent Gottesberg hosts two under-drilled deposits with wide spaced drilling suggesting a potential 80,000t of contained metal using a grade of 0.23%. 

 

Aus Tin believes the sale of Taronga will accelerate development "as quickly as possible", and help First Tin develop into as one of the world largest tin companies.

 

Under CEO Thomas Buenger, First Tin is aiming to commence definitive feasibility studies on Tellerhauser and Taronga early next year.

 

Aus Tin will be left with its smaller assets, such as the suspended Granville mine in Tasmania, and a 40% stake in the Ashford coal project in Queensland. 

 

Tin's fortunes have improved over the past year, with the price using from US$18,250 per tonne to $39,650/t over the 12 months to October due to supply disruptions in major tin producing countries as and higher demand.

 

Aus Tin shares have traded between 0.01-0.02c over the past year.