- Another ASX-lister has its eyes on Bryah Resources' (BYH) manganese interests in central WA
- Primero Group (PGX), together with resources investor ACMI Group, has tabled a $5 million offer for Bryah's stake in the Bryah Basin Manganese Joint Venture
- Currently, Bryah is exploring the JV with an offshoot of fellow materials stock OM Holdings (OMH), which has a 20 per cent stake in the manganese play
- That subsidiary also has the option to up its holding to 51 per cent, so it has the right to match the $5 million offer before anything else goes ahead
- However, if OMH's spin-off doesn't submit its own bid, Bryah intends to take the Primero and ACMI offer to the agreement stage
- Following the announcement, BYH shares rose 6.85 per cent, worth 7.8 cents each
Another ASX-lister has its eyes on Bryah Resources' (BYH) manganese interests in central WA.
Primero Group (PGX), together with resources investor ACMI Group, has tabled a $5 million offer for Bryah's stake in the Bryah Basin Manganese Joint Venture (JV).
Crucially, in today's announcement, Bryah stressed the deal only covered its Manganese interests — it can still search for copper and gold within the exploration licences.
Currently, Bryah is exploring the JV with an offshoot of fellow materials stock OM Holdings (OMH). At present, the manganese-centric subsidiary has a 20 per cent stake in the Bryah Basin JV.
However, before it accepts the $5 million for its manganese interests, Bryah needs to confer with OM Manganese (OMM for short) to see if it wants to match the offer.
It's because OMM has a pre-emptive right under their agreement to earn up to 51 per cent JV interest.
But if OMM chooses not to match the offer, Primero and ACMI want to make a $3 million upfront payment and send the remaining $2 million in instalments over the next four-and-a-half years.
Of course, there are still some key conditions to clear before the deal reaches the agreement stage. Namely, it needs Foreign Investment Review Board (FIRB) approval and for OMM to assess whether the deal aligns with its own goals. Beyond that, the offer may also require shareholder approval and hinges on both Primero and ACMI completing due diligence to their satisfaction.
If all goes to plan and OMM doesn't put in an offer, Bryah intends to give the deal the go-ahead.
"The company is pleased to have received this conditional offer and looks forward to advancing the process through to a successful completion," Bryah Managing Director Neil Marston said today.
"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," he continued.
“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 evaluating other gold-copper opportunities," the MD signed off.
Following the announcement, BYH shares rose 6.85 per cent, worth 7.8 cents each at 1:37 pm AEDT.