- 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
Bryah Resources (BYH) has provided an update on the sale of its interest in the Bryah Basin Manganese Joint Venture.
The Bryah Basin Project covers 1185 square kilometres and is located in central Western Australia.
The joint venture (JV) is held with OM Holdings' (OMH) subsidiary, OM Manganese (OMM), which now holds a 30 per cent stake in the manganese play. OMM is funding further exploration to earn up to a 51 per cent JV interest from Bryah.
However, in November 2020, Bryah received a $5 million cash offer from another ASX-lister who had its eye on Bryah's JV interest.
Primero Group (PGX) and natural resources investor, ACMI Group, offered to pay Bryah $3 million upfront, with the remaining $2 million to be paid in instalments within 54 months.
But before Bryah accepted the bid, it served OMM a notice to see if it wanted to match the $5 million offer.
Now, OMM has advised Bryah that it has chosen not to exercise its pre-emptive right to match the offer. This means Bryah is free to sell its JV interest at any price as long as it isn't less than $5 million.
Importantly, Bryah retains the right to explore for other commodities, such as copper and gold, within the tenements.
The sale to Primero and ACMI is expected to occur once all conditions have been satisfied and documentation has been finalised.
Bryah is trading grey at 7.6 cents at 1:20 pm AEDT.