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Mining Weekly

A subsidiary of ASX-listed OM Holdings, OM Manganese, has waived its pre-emptive rights to match a A$5-million conditional cash offer for ASX-listed Bryah Resources interest in the Bryah Basin manganese joint venture (JV).

Bryah last year announced a A$5-million transaction with ASX-listed Primero Group and natural resources specialist investor AMCI Group to divest of its manganese rights over the JV tenement package, allowing Bryah to maintain exposure to all other commodities within the licence.

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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.

The Market Herald

• Bryah Resources (BYH) is now free to proceed with selling its 70 per cent joint venture interest in the Bryah Basin Project in WA
• The joint venture is held with OM Holdings' (OMH) subsidiary, OM Manganese (OMM)
• While OMM is funding exploration to increase its interest, Bryah received a $5 million bid from Primero Group and ACMI Group in November last year
• Before it formally accepted, Bryah checked if OMM would want to match the offer
• However, its former joint venture partner has now waived its pre-emptive right which means Bryah can sell its interest to Primero and ACMI
• Despite the sale of its manganese interest, Bryah retains the right to explore for other commodities, such as copper and gold, within the Bryah Basin
• Bryah is trading grey at 7.6 cents