PERTH (miningweekly.com) – ASX-listed Bryah Resources has received a A$5-million conditional cash offer for its interest in the Bryah Basin manganese joint venture (JV), with fellow listed OM Holdings.
The company told shareholders on Wednesday that the offer from ASX-listed Primero Gropu and natural resources specialist investor AMCI Group only applied to the manganese interest in the tenements, with Bryah to retain exposure to all other commodities within the licences.
The offer was conditional on OM Holdings subsidiary OM Manganese not exercising its pre-emptive rights under the current JV agreement.
OM Manganese currently holds a 20% interest in the JV and is funding further exploration to earn up to a 51% interest in the project from Bryah, holding a pre-emptive right to match any cash offer.
In addition to OM Manganese not exercising its pre-emptive right, the cash offer was also subject to Foreign Investment Review Board approval and Bryah obtaining shareholder approval for the transaction.
Bryah told shareholders that the company intended to accept the conditional offer, and has serviced a notice to OM Manganese, providing the JV partner with 60 days to match the offer.
In the event that OM Manganese waives its pre-emptive right, and the offer conditions were satisfied, settlement of the transaction is targeted for January next year.
“The 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,” said Bryah MD Neil Marston.
“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 evaluate other gold/copper opportunities.”