Orbminco to Receive 12 Million Sarama CDIs in $20,000 Mt Venn Divestment Deal

Strategic Divestment Marks Orbminco’s Shift

Orbminco Limited (ASX:OB1) has taken a decisive step to reshape its asset portfolio by signing a non-binding heads of agreement to divest an 80% interest in its Mt Venn Project to Sarama Resources Ltd (ASX:SRR). The move signals Orbminco’s pivot away from its Western Australian base metals and gold holdings towards a concentrated focus on its Bronze Fox Project in Mongolia’s South Gobi Copper Belt.

The Mt Venn Project, located in a prolific mineral region of Western Australia, has been a significant part of Orbminco’s exploration efforts. However, the company’s leadership sees greater strategic value in reallocating resources to the Mongolian copper and gold opportunities, which promise a different risk-reward profile and growth potential.

Deal Structure and Consideration

Under the terms of the agreement, Sarama Resources has paid Orbminco a non-refundable exclusivity fee of A$20,000, securing a four-month window to negotiate a binding sale agreement. In addition, Sarama will cover approximately A$39,900 in annual exploration licence government rental fees to maintain tenure continuity on key licences during this exclusivity period.

Upon completion, Orbminco will receive 12 million Chess Depository Instruments (CDIs) in Sarama, representing roughly 3% of Sarama’s issued capital. This equity stake ensures Orbminco retains exposure to the Mt Venn Project’s future upside through Sarama’s stewardship, effectively maintaining a strategic foothold in the asset despite divesting majority ownership.

Conditions and Approvals Pending

The transaction remains subject to several customary conditions precedent, including the execution of a definitive binding agreement, board and shareholder approvals from both parties, and final acceptance by the TSX Venture Exchange for the issuance of Sarama CDIs. These regulatory and corporate governance steps will be critical to finalising the deal and ensuring a smooth transfer of interests.

Orbminco’s Chairman, Ian Gordon, described the divestment as a “win-win” scenario, highlighting how Sarama’s acquisition complements their existing Cosmos Project portfolio while allowing Orbminco to maintain leverage through its new equity position.

Implications for Both Companies

For Sarama Resources, the acquisition of an 80% interest in Mt Venn adds a quality asset in a mineral-rich region, potentially enhancing their exploration pipeline and regional footprint. For Orbminco, the divestment frees capital and management focus to accelerate development and exploration at Bronze Fox, a project positioned in a globally significant copper belt with promising growth prospects.

This transaction exemplifies a broader trend among junior explorers to streamline portfolios and concentrate on core projects with the highest strategic value. It also underscores the importance of maintaining flexibility through equity stakes in divested assets, balancing risk and opportunity.