Bryah Subsidiary Secures 0.75% Royalty in Bryah Basin Manganese Project
Bryah Resources’ subsidiary has acquired a 0.75% net smelter return royalty over key tenements in the Bryah Basin manganese project, streamlining the asset and enhancing future strategic options as the project advances towards production.
- West Coast Minerals acquires 0.75% royalty over two mining leases and four exploration licences
- Royalty relates to Bryah Basin manganese project under joint venture with OM (Manganese) Ltd
- Consideration paid via 100 million Bryah shares issued under placement capacity
- Project holds 3.07 million tonnes manganese resource at 20.2% Mn and is progressing to production
- Acquisition simplifies asset structure and adds optionality for future transactions
Royalty Acquisition Simplifies Bryah’s Manganese Asset
Bryah Resources Limited has taken a strategic step by having its wholly owned subsidiary, West Coast Minerals Pty Ltd, purchase a 0.75% net smelter return (NSR) royalty over two mining leases and four exploration licences within the Bryah Basin manganese project. This move consolidates the company’s interests in a project that is steadily advancing towards production, under a joint venture with OM (Manganese) Ltd, a subsidiary of the established manganese producer OM Holdings Limited.
Significance of the Bryah Basin Manganese Project
Located roughly 100 kilometres north of Meekatharra in Western Australia, the Bryah Basin project covers over 1,000 square kilometres of mineral rights, with the manganese joint venture tenements spanning approximately 600 square kilometres. The project boasts a substantial manganese mineral resource estimated at just over 3 million tonnes at an average grade of 20.2% manganese, positioning it as a significant asset in the manganese sector.
Transaction Details and Strategic Implications
The royalty acquisition was settled through the issuance of 100 million Bryah shares, issued within the company’s 15% placement capacity under ASX Listing Rule 7.1. This share-based consideration avoids immediate cash outlay, preserving Bryah’s liquidity while aligning shareholder interests with the project’s future success. According to Chair Ian Stuart, the acquisition not only rationalises the manganese asset but also adds valuable optionality for potential future transactions, enhancing Bryah’s strategic flexibility as the project develops.
Broader Portfolio and Future Prospects
Beyond manganese, Bryah Resources maintains a diversified portfolio of exploration and development assets, including battery metals projects near Lake Johnston and base metals at Gabanintha. The company is also exploring opportunities to divest certain rights for non-dilutive cash and is conducting due diligence on a high-grade gold project in Canada. This breadth of activity underscores Bryah’s ambition to leverage its geological expertise and strategic partnerships to build value across multiple commodities.
Outlook
With the Bryah Basin manganese project moving closer to production and the royalty acquisition streamlining its asset base, Bryah Resources is positioning itself to capitalise on the growing demand for manganese, a critical metal in battery and steel manufacturing. The partnership with OM Holdings, a vertically integrated manganese producer, further strengthens the project’s prospects and market credibility.
Bottom Line?
Bryah’s royalty acquisition marks a pivotal step in unlocking value from its manganese assets as production nears.
Questions in the middle?
- What is the expected timeline for the Bryah Basin manganese project to reach commercial production?
- How will the royalty acquisition impact Bryah’s future cash flow and valuation?
- Are there plans to further consolidate or restructure Bryah’s other mineral rights and joint ventures?
