Total
0
Shares
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Primero Group (PGX) has said no deal to its proposed purchase of Bryah Resources’ (BYH) 70 per cent stake in the Bryah Basin Manganese Joint Venture
  • Just last week, Bryah gave the all-clear for Primero to purchase the interest
  • However, Primero has now dropped the deal, as some “outstanding conditions on the deal not been met”
  • While initially all for the deal, Bryah said it was “happy to retain” its 70 per cent interest
  • On the market today, Bryah is down 6.25 per cent and trading at 6 cents per share, while Primero is up 1.77 per cent and trading at 57.5 cents each

Primero Group (PGX) has said no deal to its proposed purchase of Bryah Resources’ (BYH) 70 per cent stake in the Bryah Basin Manganese Joint Venture.

Bryah holds the joint venture (JV) alongside an OM Holdings’ (OMH) subsidiary, OM Manganese (OMM), which retains the other 30 per cent stake.

Last November, the company received a $5 million offer from Primero for its stake in the JV. Primero offered to pay $3 million cash upfront for the interest, with the remaining $2 million to be paid in instalments.

Before accepting the deal, Bryah checked to see if OMM wanted to match the offer. However, just last week, its joint venture partner waived its pre-emptive right, meaning Byrah was free to sell the interest to Primero.

Today, Primero has said no to the deal, as some outstanding conditions have not been met.

It is also important to note that yesterday, mining contractor and ASX-lister NRW (NWH) completed its buyout of Primero.

While initially all for the deal, Bryah said it was “happy to retain” its interest in the joint venture, citing a very positive market for manganese projects.

Notably, the company will keep its right to transfer its interest to a third party until April 7, given a price above $5 million.

Over the next four years, global manganese ore is expected to grow at an annual compound rate of 3.5 per cent. Manganese is vital in manufacture steel, and Australia remains a major supplier of manganese products to the world.

On the market today, Bryah is down 6.25 per cent and is trading at 6 cents per share, while Primero is up 1.77 per cent and trading at 57.5 cents each at 12:15 pm AEDT.

BYH by the numbers
More From The Market Herald
Vimy Resources (ASX:VMY) - Interim CEO, Steven Michael

" Vimy Resources (ASX:VMY) advances controversial Mulga Rock Uranium Project

Vimy Resources (VMY) has submitted a notification of ‘substantial commencement’ for the Mulga Rock Uranium Project in Western Australia.
Bardoc Gold (ASX:BDC) - CEO, Robert Ryan

" Bardoc Gold (ASX:BDC) confirms extensions of Zoroastrian deposit

Bardoc Gold (BDC) has announced most recent assay results from the Zoroastrian deposit within its namesake project “exceeded expectations”.
Albion Resources (ASX:ALB) - Executive Chairman, Colin Locke

" Albion Resources (ASX:ALB) intersects shallow lead-zinc mineralisation at Pillara East

Albion Resources (ALB) has intersected shallow zinc-lead mineralisation at the Pillara East target in Western Australia.
Breaker Resources (ASX:BRB) -

" Breaker Resources (ASX:BRB) sees further potential at Manna

Breaker Resources (BRB) has seen further potential for the Manna lithium prospect as a significant lithium discovery.