Ora Banda Mining (OBM) has completed the sale of its Lady Ida tenements in Western Australia (WA) to Lamerton and Geoda. The deal includes the divestment of mining leases M16/0262, M16/0263, and M16/0264, as well as related licenses and applications. In exchange, Ora Banda has received a total payment of A$10m ($6.43m).
As part of the agreement, Ora Banda will retain rights to all minerals other than gold and silver on the divested assets. The company will also maintain certain access rights over the miscellaneous licenses. OBM’s managing director, Luke Creagh, stated that the sale of these tenements is in line with OBM’s strategy to focus on high-grade underground deposits.
The Lady Ida tenements are located approximately 65km from the Davyhurst plant and would have required significant capital investment to establish necessary infrastructure, such as haul roads and access routes. In addition, the deposit on these tenements is of lower grade compared to other resources on OBM’s holdings.
The proceeds from the sale will bolster OBM’s balance sheet, providing financial strength for future projects. Last year, the company secured $12.74m in debt and royalty funding, which will be utilized to support the development of the Riverina project at the greater Davyhurst gold project in WA. This includes activities such as exploration, resource development, and capital expenditure.
Overall, the divestment of the Lady Ida tenements enables Ora Banda Mining to sharpen its focus on high-grade underground deposits and prioritize its production targets.
– Ora Banda Mining (OBM)
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