Bryah Resources will hold on to its 70 per cent stake in a Mid West manganese project, after joint buyers Primero Group and investment firm AMCI withdrew their $5 million offer.
The Bryah Basin manganese project is a joint venture between Bryah and Singaporean company OM Holdings, which holds the remaining 30 per cent.
This morning, Bryah said some conditions of the Primero and AMCI offer, received in November last year, had not been met and were unlikely to be achieved by the April 7 deadline. The outstanding conditions included approval from the Foreign Investment Review Board and a satisfactory arrangement on future objectives between the joint buyers and OM Holdings.
Bryah also noted Primero and AMCI were not satisfied with the results of their due diligence period.
However, Bryah said it was happy to retain its stake in the project, given recent exploration success including high-grade hits announced in January.
Bryah added that it held the right to transfer its JV interest to a third party before April 7, so long as the offer price was not less than the original $5 million.
“The outlook for manganese remains very positive, particularly in the growing energy storage sector where manganese is seen as a low-cost solution in the manufacture of batteries for the growing electric vehicle [market] and other sectors,” Bryah said.
“Manganese is a vital element in the manufacture of steel and Australia remains a major supplier of manganese products to the world.”
The West Perth-based company said exploration activity at Bryah Basin was continuing as normal, and planned to complete mineral resource estimates at the Horseshoe South, Brumby Creek and Black Hill prospects.
OM has funded $2.35 million on exploration to date, Bryah said, and was expected to spend a further $650,000 in the coming months to raise its stake in the project to 51 per cent.
The asset includes the past-producing Horseshoe South manganese mine, which Bryah says can be reactivated within a relatively short time frame.
Shares in the company were down 6.3 per cent at 1:24pm AEDT to trade at 6 cents.