https://www.miningweekly.com
Exploration|Gold|Mining
Exploration|Gold|Mining
exploration|gold|mining

Ora Banda inks $45m lithium JV with Wesfarmers

30th October 2023

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

Font size: - +

Gold producer Ora Banda Mining on Monday announced a farm-in agreement with a subsidiary of Wesfarmers to sell a large portion of its mineral rights, other than gold, on the Davyhurst tenement package in a A$45-million deal.

The announcement sent Ora Banda’s stock surging 19% to close at A$0.16 a share, just shy of its 52-week high of A$0.17 a share.

In terms of the agreement, Wesfarmers subsidiary Brenahan Exploration (BEPL) will buy 65% of the mineral rights, excluding gold and byproducts, for A$26-million in cash and a 2% royalty.  

Ora Banda and BEPL will also form a 65:35 joint venture with BEPL having the option to increase that to 80:20 by sole funding an additional A$15-million in exploration expenditure over the next three years.

Ora Banda is free carried from any discovery to completion of a definitive feasibility study (DFS) over the area applicable to that DFS.

“The Davyhurst tenement package is very large and has never had any sustained or modern exploration programmes given its disjointed and under-capitalised historical ownership. Although we have had encouraging early stage lithium results, Ora Banda is a gold-focused company and given the underexplored nature and size of this belt, we expect it would take many years to do it justice for other minerals,” said MD Luke Creagh.

Essentially, Ora Banda views this as a A$45-million deal with A$30-million in cash and A$15-million in exploration, he added. “The deal structure is aligned to maximise the potential of multiple discoveries to the benefit of both parties, while providing balance sheet strength to Ora Banda to further grow gold production,” Creagh added.

To raise further capital, Ora Banda has agreed to effectively on-sell 1.5% of the 2% royalty to be received from BEPL to Hawke’s Point for A$4-million.

Edited by Creamer Media Reporter

Comments

Showroom

SBS Tanks
SBS Tanks

SBS® Tanks is a leading provider of innovative water security solutions with offices in Southern Africa, East and West Africa, the USA and an...

VISIT SHOWROOM 
Showroom image
Alcohol Breathalysers

Supplier & Distributor of the Widest Range of Accurate & Easy-to-Use Alcohol Breathalysers

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Resources Watch
Resources Watch
21st February 2024
Photo of Martin Creamer
Major hydrogen economy developments in SA
21st February 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.22 0.258s - 127pq - 2rq
Subscribe Now