- Primero Group (PGX) has said no deal to its proposed purchase of Bryah Resources’ (BYH) 70 per cent stake in the Bryah Basin Manganese Joint Venture
- Just last week, Bryah gave the all-clear for Primero to purchase the interest
- However, Primero has now dropped the deal, as some “outstanding conditions on the deal not been met”
- While initially all for the deal, Bryah said it was “happy to retain” its 70 per cent interest
- On the market today, Bryah is down 6.25 per cent and trading at 6 cents per share, while Primero is up 1.77 per cent and trading at 57.5 cents each
Primero Group (PGX) has said no deal to its proposed purchase of Bryah Resources’ (BYH) 70 per cent stake in the Bryah Basin Manganese Joint Venture.
Bryah holds the joint venture (JV) alongside an OM Holdings’ (OMH) subsidiary, OM Manganese (OMM), which retains the other 30 per cent stake.
Last November, the company received a $5 million offer from Primero for its stake in the JV. Primero offered to pay $3 million cash upfront for the interest, with the remaining $2 million to be paid in instalments.
Before accepting the deal, Bryah checked to see if OMM wanted to match the offer. However, just last week, its joint venture partner waived its pre-emptive right, meaning Byrah was free to sell the interest to Primero.
Today, Primero has said no to the deal, as some outstanding conditions have not been met.
It is also important to note that yesterday, mining contractor and ASX-lister NRW (NWH) completed its buyout of Primero.
While initially all for the deal, Bryah said it was “happy to retain” its interest in the joint venture, citing a very positive market for manganese projects.
Notably, the company will keep its right to transfer its interest to a third party until April 7, given a price above $5 million.
Over the next four years, global manganese ore is expected to grow at an annual compound rate of 3.5 per cent. Manganese is vital in manufacture steel, and Australia remains a major supplier of manganese products to the world.
On the market today, Bryah is down 6.25 per cent and is trading at 6 cents per share, while Primero is up 1.77 per cent and trading at 57.5 cents each at 12:15 pm AEDT.