Bryah free to lock in $5m deal for manganese asset
Special Report: The $5m cash windfall will enable Bryah Resources (ASX:BYH) – which recently raised another $1.3m — to more aggressively focus on its gold-copper assets in WA as well as evaluating other opportunities, it says.
In November, Bryah received a $5 million cash offer for its interest in the Bryah Basin Manganese Joint Venture with OM Holdings (ASX:OMH).
The bid came from well-funded mining services play Primero Group (ASX:PGX) and natural resources specialist investor, AMCI Group.
OMH – which holds a 30 per cent interest and is funding further exploration to earn up to a 51 per cent from Bryah — had a pre-emptive right to match the cash offer.
OMH has now advised Bryah that it will not match the offer, which allows the explorer to finalise the $5m deal.
Importantly, Bryah retains rights to all commodities other than manganese over the joint venture area, which is highly prospective for copper and gold.
In December, Bryah secured an agreement over its prospective Tumblegum South gold deposit near Meekatharra, which could enable it to begin mining the ~42,000oz resource.
The deal provides access to Adaman Resources’ processing facility at the Kirkalocka gold mine to treat material mined at Tumblegum South.
A binding arrangement is expected later this year.
Bryah managing director Neil Marston said the deal would be a step closer to production for the company.
“One of the challenges facing any company with gold mineral resources not large enough to support the construction of a standalone plant is securing access to facilities to process their material,” he said.
“Obtaining access to the Kirkalocka gold processing facility brings Bryah another step closer to realising the value of its gold resources at Tumblegum South.”
This article was developed in collaboration with Bryah Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.