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Ora Banda’s (ASX:OBM) Mt Ida agreement on track for September completion

Highlights

  • The agreement between Ora Banda and TNT Mines to sell Mt Ida Gold asset has now become unconditional.
  • OBM looks to conclude the transaction within September 2021.
  • OBM has been continuing work at the Davyhurst processing facility to enhance its performance.

Recently, Ora Banda Mining Limited (ASX:OBM) had inked an agreement to sell its Mount Ida asset under a deal with TNT Mines (ASX:TIN). OBM had signed a non-binding agreement with TIN for the sale of its Mt Ida project for a cash consideration of AU$11 million.

Agreement becomes unconditional

As per the latest development, all conditions related to the agreement have now been satisfied, and the agreement for the sale of the Mt Ida project has turned unconditional.

RELATED ARTICLE: Ora Banda Mining (ASX:OBM) takes a step forward for the sale of its subsidiary

The agreement comprised the acquisition of all the issued capital in Mt Ida Gold Pty Ltd, which is the holding company of the project and the wholly-owned subsidiary of OBM.

Conditions for sale of Mt Ida asset

Copyright © 2021 Kalkine Media | Data Source: OBM Announcement 13/09/21

OBM had been confident about concluding the transaction within September 2021 and has now reinforced this anticipation as the transaction now becomes unconditional.

RELATED ARTICLE: Ora Banda (ASX:OBM) cracks a deal with TNT Mines (ASX:TIN) to offload Mt Ida asset

Ongoing work in tandem

Meanwhile, OBM has been continuing work across the key deposits located at its flagship Davyhurst project. The Company has been making consistent efforts for enhancing the performance and throughput of the Davyhurst Processing Plant.

Moreover, the Company believes that it is suitably poised for stronger, consistent production at its Davyhurst Processing Plant in the future.  

RELATED ARTICLE: Ora Banda (ASX:OBM) delivers strong results from Riverina underground drilling   

Riverina open pit

Source: OBM Announcement 28/07/21

In addition to this, drilling at Riverina Open-Pit and Golden Eagle Underground continued to be slightly ahead of schedule, while mining at the Missouri Open-Pit mine remained behind budget.

As of 01 September 2021, the Company had cash and unsold bullion on hand of around AU$8.03 million.

RELATED ARTICLE: Ora Banda (ASX:OBM) cracks significant mineralisation at grass roots exploration

Bottom Line

The Company has been making notable progress in enhancing the performance of the Davyhurst processing facility and the advancement of key deposits across the Davyhurst Project. Given the current agreement, it shall be interesting to see how OBM makes use of the funds received from the sale of its asset.

RELATED ARTICLE: Ora Banda (ASX:OBM) enhances gold reserves despite rising costs and cut-off grades

OBM stock was noted at AU$0.099 on 20 September 2021 (AEST: 02:03 pm).

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