Albright Metals’ Bryah Basin Sale Raises Questions on Future Manganese and Gold Strategy
Albright Metals has agreed to sell a significant portion of its Bryah Basin tenements to Catalyst Metals for $1 million cash plus $800,000 in shares, enabling a sharper focus on its Canadian gold and antimony projects.
- Sale of Bryah Basin tenements for $1 million cash and $800,000 in Catalyst Metals shares
- Option granted to Catalyst Metals to acquire additional tenements excluding manganese rights for $2.2 million
- Albright retains 40% stake and manganese mineral rights in Bryah Basin Manganese Joint Venture
- Funds to advance Golden Pike Gold and Antimony Project in New Brunswick, Canada
- Transaction completion contingent on third-party consents including native title and royalty holders
Strategic Asset Sale to Catalyst Metals
Albright Metals Limited (ASX, ABR) has entered into a significant agreement to sell a large portion of its Bryah Basin tenements in Western Australia to Catalyst Metals Limited (ASX, CYL). The deal, valued at $1.8 million comprising $1 million in cash and $800,000 in Catalyst shares, marks a pivotal step in Albright’s strategic repositioning.
The transaction includes an option for Catalyst Metals to acquire additional tenements associated with the Bryah Basin Manganese Joint Venture (BBMJV), excluding manganese mineral rights, for a further $2.2 million in cash and/or shares. This layered structure allows Catalyst to expand its footprint in the region while Albright retains key manganese interests through its 40% stake in the joint venture.
Funding Focused on Canadian Growth
CEO Greg Hill emphasised the non-dilutive nature of the funding, highlighting its importance in advancing Albright’s flagship Golden Pike Gold and Antimony Project in New Brunswick, Canada. This project, featuring the high-grade Vail Road gold deposit and promising antimony prospects, represents a strategic pivot towards high-value mineral assets in a well-serviced mining jurisdiction.
Proceeds from the sale will be channelled into exploration and development activities in Canada, signalling Albright’s commitment to expanding its presence in North America’s resource sector. The Golden Pike project benefits from proximity to infrastructure such as road, rail, port, and power, enhancing its development potential.
Maintaining Manganese Interests Amidst Transition
While divesting a substantial portion of its Bryah Basin tenements, Albright Metals will continue to participate actively in the Bryah Basin Manganese Project through the BBMJV with OM (Manganese) Ltd. The manganese resource boasts an indicated and inferred mineral resource estimate exceeding 3 million tonnes at an average grade of 20.2% manganese, underscoring its significance.
The joint venture’s retention of manganese mineral rights ensures Albright remains exposed to this critical commodity, even as it streamlines its asset portfolio. Catalyst’s option excludes these manganese rights, preserving the joint venture’s operational integrity and Albright’s ongoing involvement.
Conditions and Next Steps
Completion of the transaction is subject to obtaining necessary third-party consents, including deeds of assignment from royalty holders and native title parties. These regulatory and stakeholder approvals are standard but could influence the timing and finalisation of the deal.
Looking ahead, Catalyst Metals’ decision to exercise the option on the BBMJV tenements will be closely watched, as it could further reshape the regional exploration landscape. Meanwhile, Albright’s focus on its Canadian assets positions it to capitalise on emerging opportunities in gold and antimony markets.
Bottom Line?
Albright Metals’ Bryah Basin sale funds a clear pivot to Canadian gold and antimony, while retaining manganese exposure through its joint venture.
Questions in the middle?
- Will Catalyst Metals exercise its option to acquire the remaining Bryah Basin tenements?
- How will Albright’s increased focus on Canada impact its exploration and development timelines?
- What are the potential market reactions to Albright’s reduced footprint in Western Australia?
