Congratulations to Ora Banda Mining Ltd (ASX: OBM) on executing a binding lithium focused joint venture and farm-in agreement with Wesfarmers Chemicals, Energy & Fertilisers (WesCEF).

Under the agreement, Ora Banda will sell 65% of its mineral rights (excluding gold) over the Davyhurst tenement package for $26 million cash, and a 2% royalty. WesCEF has the ability to sole fund $15 million of exploration over three years to increase its stake in the JV to 80%. Ora Banda is free carried from any discovery to the completion of a DFS. In parallel, Ora Banda has agreed to sell 1.5% of the 2% royalty to Hawke’s Point Holdings for $4 million cash.

Luke Creagh, Managing Director of Ora Banda said: “We are very excited by this transaction as WesCEF is a high calibre strategic partner who has the technical expertise and capability to unlock the belt for minerals that are non-core to Ora Banda. The WesCEF team that will work on this tenement package has a track record of success as they discovered and are helping deliver the Mt Holland Lithium Project.”

Sternship Advisers was pleased to advise Ora Banda on the Transaction. Gilbert + Tobin acted as legal adviser.