Bryah Resources (ASX: BYH) revealed this morning that OM Holdings has committed to manganese joint venture and the next phase of manganese exploration at the Bryah Basin project in Western Australia.
OM will now pay Bryah a $250,000 exercise fee to secure its initial 10% interest in the project’s manganese rights.
Under the joint venture terms agreed in April, OM will now spend $2 million on manganese exploration to increase its interest in the project’s manganese rights from 10% to 51%.
OM can then spend a further $1.8 million on exploration to grow its manganese ownership to 60%.
To lock-in the full 70%, OM can then elect to spend an extra $2.5 million on the project.
“We welcome the funding support and manganese mining expertise and efficiencies that the OM Group will provide to the joint venture,” Bryah managing director Neil Marston said.
“Since signing the agreement four months ago, we have developed a very positive working relationship, and we look forward to work with the OM Group with the aim of re-establishing a manganese mining operation in the region,” he added.
Manganese exploration at Bryah Basin
Since April, OM has spent $500,000 on exploring project which has yielded “highly encouraging” manganese results.
A phase two reverse circulation program was completed in August and comprised 83-holes for 2,081m across Brumby Creek, Black Hill, Black Caviar and Horseshoe South.
Bryah has already submitted a plan for the next exploration stage at Bryah Basin, with this stage estimated to cost $500,000 and will test the high-grade mineralised extensions at Brumby Creek and new targets – Cheval and Black Beauty, which were discovered through rock chip sampling programs.
In readiness for upcoming program, Bryah has already begun planning and permitting activities so the new prospects can be drilled as soon as possible.