- Ora Banda Mining (OBM) is progressing the sale of its Mt Ida Gold asset to fellow ASX lister TNT Mines (TIN)
- Following a competitive process, the parties signed a non-binding agreement for the $11 million cash sale and have since penned a formal agreement
- The transaction remains subject to several conditions with due diligence reportedly on track for completion on or before September 17
- OBM shares have closed down 4.76 per cent at 10 cents each, while TIN has ended the day 6.12 per cent up at 26 cents
Ora Banda Mining (OBM) is progressing the sale of its Mt Ida Gold asset to fellow ASX lister TNT Mines (TIN).
Mt Ida is located near OBM’s Davyhurst Gold Project in Western Australia, where the company is aiming to produce more than 80,000 ounces of gold.
Following a competitive process, the parties previously signed a non-binding agreement for the $11 million cash sale and have since penned a formal deal.
The transaction remains subject to several conditions and, while OBM said it could not guarantee completion of the deal, TIN confirmed due diligence and approvals were on track to wrap up by September 17.
These activities include the completion of legal, financial and technical due diligence on the Mt Ida asset by TIN, including tax matters and structuring of the transaction.
OBM said following signing of the formal agreement and a successful $12 million capital raise by TIN, in accordance with the deal’s conditions, the sale was on track to be completed this month.
OBM shares closed down 4.76 per cent at 10 cents each, while TIN ended the day 6.12 per cent up at 26 cents.