Ora Banda Mining Ltd (ASX:OBM) has resolved its court issue with Riverina Resources Pty Ltd and Greenstone Resources Limited, ending a complex chapter for the companies with a combination of cash and share payments amounting to around $6.4 million.
The settlement comprises a $3.4 million cash payment and the issuance of 10,630,935 ordinary shares valued at $3.0 million, to be completed within five business days.
Just good business
Managing director Luke Creagh said: “The resolution of this matter, out of court and to the mutual satisfaction of all parties, is just good business.
“Importantly for Ora Banda, it helps clear the way for our joint venture with WesCEF to proceed in a timely manner which would provide further funds to accelerate the development opportunities within our gold business.”
This agreement concludes the long-standing 2007 joint venture arrangement, transferring all nickel rights to Ora Banda and eliminating the previous requirement to obtain Riverina Resources and Greenstone Resources' consent in Ora Banda’s farm-in deal with Wesfarmers (ASX:WES) Chemicals, Energy and Fertilisers Division’s subsidiary, Davyston Exploration Pty Ltd (DEPL).
This paves the way for the DEPL transaction to proceed as planned, with Ora Banda expecting to receive a significant $16 million payment upon satisfying the remaining conditions.
The historical disputes, dating back to actions initiated by Riverina Resources and Greenstone against Carnegie Gold Pty Ltd in 2022, and subsequent counterclaims by Ora Banda in February 2024, have now been fully resolved.
The agreement also provides for the shares issued to Greenstone and Abbotsleigh, an associate of Riverina Resources, to be placed in escrow for periods ranging from three to nine months.
With the termination of the 2007 agreement, Ora Banda Mining now holds unencumbered nickel rights and a clear path to advancing its strategic objectives with the DEPL transaction.