- Ora Banda Mining (OBM) is selling its Mt Ida asset, signing an agreement with TNT Mines (TIN) to sell the project for $11 million
- 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
- TNT is set to carry out a $12 million capital raise to help pay for the acquisition and has two weeks to carry out due diligence
- The sale comes at a good time for OBM, which revealed yesterday it has $7.5 million cash in the bank
- Shares in Ora Banda Mining are trading 12.9 per cent up at 10.5 cents each and TIN is trading in the grey at 17 cents per share at 11:28 am AEST
Ora Banda Mining (OBM) is selling its Mt Ida asset, signing an agreement with TNT Mines (TIN) to sell the project for $11 million.
OBM and TIN signed a non-binding and exclusive term sheet to sell Mt Ida, which is located near OBM’s Davyhurst Gold Project in Western Australia.
Davyhurst is on track to produce more than 80,000 ounces of gold in FY22, after ramping up production at the site over the past few months.
Under the agreement signed today, TNT Mines and Ora Banda still need to enter a formal agreement for the sale, while TIN has two weeks to carry out due diligence.
TNT Mines is planning to carry out a $12 million placement to fund the acquisition once a formal agreement has been signed.
Full details of the capital raise are set to be announced, but the sale comes at a good time for OBM.
The mining stock revealed yesterday it had cash worth $8.03 million and 1298 ounces of unsold bullion, with no debt.
However, after accounting for bullion, GST and creditors, OBM said it had adjusted cash of $7.53 million — meaning today’s sale will give its balance sheet a much-needed boost.
Following today’s announcement, shares in Ora Banda Mining were trading 12.9 per cent up at 10.5 cents each and TIN was trading in the grey at 17 cents per share at 11:28 am AEST.