Bryah receives $5m cash offer for manganese assets
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Special Report: The sale of its Manganese Joint Venture Interest will enable a cashed-up Bryah Resources (ASX:BYH) to aggressively focus on its gold-copper exploration assets and other acquisition opportunities.
WA explorer Bryah has received – and intends to accept — a conditional $5m all-cash offer for its interest in the Bryah Basin Manganese Joint Venture with OM Holdings (ASX:OMH).
The bid comes from well-funded mining services play Primero Group (ASX:PGX) and natural resources specialist investor, AMCI Group.
OMM – which holds a 20 per cent interest and is funding further exploration to earn up to a 51 per cent from Bryah — has a pre-emptive right to match the cash offer.
If they waive this right, Bryah is targeting settlement of the transaction in January 2021.
Importantly, Bryah still retains exposure to all other commodities within the licences after the sale, other than manganese.
This area is considered highly prospective for discovery of gold and copper-gold deposits.
“A $5 million cash injection for no share capital dilution is a significant benefit for our shareholders, who retain very significant exposure to the gold and copper-gold potential of our portfolio in this well-endowed region, and the cash-backing solidly underpins the current share price,” managing director Neil Marston says.
“The cash proceeds from this sale will enable Bryah to more aggressively focus on its gold-copper exploration assets in Western Australia as well as evaluating other gold-copper opportunities.”
Investors loved the news, sending the stock up 10 per cent in early trade Wednesday.
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.