Ora Banda Mining (ASX:OBM) has entered into a deed with Perth-based unlisted explorer AustSino Resources to terminate a historical royalty payable by Ora Banda’s subsidiary Carnegie to AustSino.
In 1996, AustSino and Consolidated Gold entered into an agreement, that was subsequently assigned to Carnegie, to pay AustSino a 6% gross revenue royalty on gold produced from tenements comprising part of the Mulline-Riverina Project area.
All parties involved have released each other from any further obligations under the royalty deed.
In consideration for the termination, Ora Banda, which has a market capitalisation of $621.95 million, will pay $600,000 cash and issue 1.09 million ordinary shares in the company to AustSino.
Ora Banda says the shares are expected to be issued around the end of July 2024.
Ora Banda Mining is a gold explorer and developer focused on its wholly owned Davyhurst Project in the Eastern Goldfields region of Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Ora Banda Mining
