Confidence abounds in Bryah’s Manganese JV as OM Holdings commits $500,000 to up its stake to 51%
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In a sign of confidence for Bryah Resources’ developing Bryah Basin manganese project, JV partner OM Holdings has committed to grow its stake to 51%.
OM, which is funding exploration at the project owned and managed by Bryah Resources (ASX: BYH), has again put its money where its mouth is with a commitment to spend a fourth tranche of $500,000 at the JV.
It will take the total investment OM has made in the JV to $3 million since 2019, after the Singapore-based miner recently spent a further $500,000 to up its stake from 30-40%.
Malaysian-listed OM’s enthusiasm for the Bryah Basin JV has only gotten stronger since Bryah reported recent samples of up to 49% in rock chips.
While it didn’t release an announcement of its own, OM’s shares skyrocketed this morning by 24% to more than $1.
Exploration results have shed a positive light on the project since Bryah elected to retain its stake in February, following news a $5m bid from Primero Group and AMCI had fallen over.
“We have been very successful in our exploration efforts to date and believe that there is significant potential to identify sufficient resources to support the commencement of high-grade manganese mining operations in the Bryah Basin in the near future,” Bryah managing director Neil Marston said.
“We are very pleased that OM (Manganese) Limited has elected to continue funding exploration on this exciting manganese project.
“These funds will be applied by Bryah to advance the project towards development in the near term.
“Once this next $500,000 is spent and OMM has achieved its 51% joint venture interest in the project, Bryah Resources will be able to elect to contribute its share of ongoing JV expenditure to maintain its 49% interest.”
With the fourth tranche of OM’s investment now committed, Bryah can ratchet up its exploration activities at the JV.
A gradient array survey has been completed to outline new targets at Brumby Creek, where diamond and RC drilling has already delivered high grade hits like 16m at 38%Mn and 3m at 41%Mn.
Reverse circulation and stepout resource drilling is planned there, along with beneficiation testwork and mineral resource estimates for the Horseshoe South Manganese Mine, Brumby Creek and Black Hill prospects.
RC drilling is scheduled for late July, after the completion of heritage surveys.
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.