Ora Banda Mining to receive $11 million for Mt Ida

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Ora Banda Mining Ltd (ASX:OBM) will sell TNT Mines Ltd (ASX:TIN) 100% of its Mt Ida Gold Pty Ltd.


After weeks of negotiation, a formal non-binding agreement has been executed, which will see TNT pay A$11 million in cash for the asset.


Conditions to be met


For the deal to go through, certain conditions had to be met.


These included:


  1. Formal agreement: the parties using their best endeavours to enter into a formal agreement documenting the transaction contemplated by this offer within seven days of acceptance of the offer.
  2. Due diligence: the purchaser completing legal, financial and technical due diligence on the Mt Ida asset within 14 days, including tax matters and structuring of a transaction.
  3. Fund raising: the purchaser receiving binding commitments for a capital raising of not less than A$12 million within seven days of acceptance of this offer and subject only to the execution of a formal agreement.
  4. Approvals: the receipt of all necessary regulatory and third-party consents, waivers and approvals within seven days of execution of a formal agreement.

Set to be completed by September 17


As this is a non-binding agreement, the acquisition is not yet guaranteed.


TNT is completing due diligence, which should be finalised along with approvals, by close of business on Friday, September 17.


Completion is on track for this date.

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