KUALA LUMPUR (June 24): OM Holdings Ltd is increasing its stake in the Bryah Basin Manganese Joint Venture (BBMJV) to 51%, from 40% previously.
In a bourse filing with both the Australian Securities Exchange (ASX) and Bursa Malaysia, the group announced its wholly-owned subsidiary OM (Manganese) Ltd (OMM) had elected to continue funding a further A$500,000 (about RM1.58 million) worth of exploration in the Manganese JV, which it shares with Bryah Resources Ltd.
“Pursuant to the terms of the farm-in and JV agreement, OMM recently funded A$500,000 in project expenditure, under Tranche 3, to increase its JV interest from 30% to 40%. OMM has now formally elected to proceed to increase its JV interest to 51% under Tranche 4, funding an additional A$500,000 of project expenditure,” the filing read.
Funds from Tranche 4 will be used for resource and reconnaissance drilling, mineral resource estimation and beneficiation test work.
The filing stated that a gradient array IP (GAIP) survey was completed earlier this week at BBMJV’s Brumby Creek prospect where earlier reverse circulation (RC) and diamond drilling intersected significant high-grade manganese mineralisation.
Once the results of the survey are fully assessed, they will be able to provide a number of new areas for follow-up drill testing.
Breaking down the utilisation of the Tranche 4 funds further, the filing said that in the next quarter, RC drilling of GAIP targets and step-out resource drilling will be done. Additionally, beneficiation test work and the completion of mineral resource estimates at the Horseshoe South Manganese Mine, Brumby Creek and Black Hill prospects will also be conducted.
RC drilling is planned to commence once a heritage survey is completed in late July 2021.The Bryah Basin spans 1,125 sq km in central Western Australia.
OM Holdings is the first-ever company to have conducted a cross-listing on Bursa and the ASX.
Bryah Resources managing director Neil Mastron stated that the JV had been very successful in its exploration efforts to date and believe that there is significant potential to identify sufficient resources to support the commencement of high-grade manganese mining operations in the Bryah Basin in the near future.
“We are very pleased that OMM has elected to continue funding exploration of this exciting manganese project. These funds will be applied by Bryah to advance the project towards development in the near term.
Once this next A$500,000 is spent and OMM has achieved its 51% JV interest in the project, Bryah Resources will be able to elect to contribute its share of ongoing JV expenditure to maintain its 49% interest,” Mastron said.
At Bursa’s noon market break today, shares in OM Holdings were up 7.9% or 29 sen higher at RM3.96, valuing it at RM2.92 billion.
