Ora Banda Mining has completed the $26 million sale of non-gold mineral rights at the Davyhurst Project in Western Australia. This sale is part of a farm-in arrangement with Davyston Exploration Pty Ltd (DEPL).
Ora Banda has received a second cash payment of $11.71 million. The remaining $4.29 million will be paid on April 30, 2024, bringing the total cash consideration to $26 million.
Ora Banda will also receive a 2% royalty from DEPL in respect of all other minerals. However, Ora Banda expects to receive an additional $4 million from Hawkes Point for effectively on-selling 1.5% of that royalty.
Ora Banda’s managing director, Luke Creagh, said the company is “delighted to reach completion on this deal with a world-class joint venture partner focused on lithium and other base metal prospectivity.”
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.
