Ora Banda Mining Limited (ASX: OBM) has recently formalized a binding farm-in agreement with Brenahan Exploration Pty Ltd (BEPL), a fully owned subsidiary of Wesfarmers Chemicals, Energy & Fertilisers (WesCEF). Under this agreement, Ora Banda will sell 65% of its non-gold mineral rights on the Davyhurst tenement package for AU$26 million in cash and a 2% royalty.
The deal establishes a joint venture (J.V.) between BEPL and Ora Banda, with BEPL having the option to increase its stake to 80% by funding AU$15 million in exploration over three years. The transaction's initial payment of AU$22.1 million is due upon completion, with the remaining AU$3.9 million payable by April 30, 2024. To potentially increase the total amount to AU$30 million, Ora Banda plans to sell 1.5% of the 2% royalty to Hawke’s Point Holdings L.P. The transaction is subject to conditions and is expected to conclude in Q1 2024.
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