Ora Banda Mining Ltd (ASX:OBM) has completed the $26 million sale of non-gold mineral rights at the Davyhurst Project in Western Australia and has received a second cash payment of $11.71 million.
This sale is part of a farm-in arrangement with Davyston Exploration Pty Ltd (DEPL), a wholly-owned company in the Wesfarmers (ASX:WES) Chemicals, Energy & Fertilisers division (WesCEF).
The remaining $4.29 million will be paid on April 30, 2024, at which point Ora Banda will have received the full $26 million cash consideration due under the DEPL transaction.
Ora Banda will also receive a 2% royalty from DEPL in respect of all other minerals but expects to receive an additional $4 million from Hawkes Point for effectively on-selling 1.5% of that royalty.
“World-class partner”
Ora Banda’s managing director Luke Creagh said: “We are delighted to reach completion on this deal with a world-class joint venture partner focused on lithium and other base metal prospectivity.
"We are now looking forward to what WesCEF and Ora Banda’s combined efforts can achieve as we continue to unlock the full exploration potential of the Davyhurst belt.”
Completion was reached after the remaining conditions precedent to the DEPL transaction were satisfied.
The additional $4 million from Hawkes Point is subject to the completion of full form documentation with DEPL, which is expected to occur during the current quarter.