Ora Banda Mining Ltd (ASX:OBM) has concluded the sale of its non-core Lady Ida tenements for total consideration of A$10 million to Lamerton Pty Ltd and Geoda Pty Ltd.
The assets, including mining and miscellaneous licences M16/0262, M16/0263, M16/0264, L15/224, L16/58, L16/62, L16/103, L16/138 and application for L16/142, were sold through its fully owned subsidiary, Siberia Mining Corporation Pty Ltd.
This transaction will strengthen the company's balance sheet ahead of a final investment decision on Riverina Underground Project in Western Australia.
READ: Ora Banda Mining expands high-grade gold mineralisation corridor at Riverina with strong results
Retained rights
With completion of the Lady Ida Sale, Ora Banda has now received the remainder of the consideration from the purchasers.
OBM will retain mineral rights for all non-gold/silver over the sale tenements.
This includes certain rights of access over the miscellaneous licences as well.
READ: Ora Banda Mining to gain $10 million from sale of non-core Lady Ida tenements
On announcing the sale earlier this year, Ora Banda managing director Luke Creagh said: “The sale of these tenements for $10 million is a great outcome for OBM shareholders as they do not align with OBM’s strategy to target high-grade underground deposits, nor is it included in our production target of 100,000 ounces per annum supported by reserves.
“In addition, the Lady Ida tenements are approximately 65 kilometres from the Davyhurst Plant with significant capital requirements to establish haul roads and access for OBM, and the deposit is lower grade than other resources on the OBM tenements.
“The $10 million sale proceeds will strengthen OBM’s balance sheet as we progress the Riverina underground toward final investment decision and continue exploration on other advanced high-grade targets.”