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.