Gold producer Ora Banda Mining has agreed to sell a stake in non-gold minerals rights on its Davyhurst tenements in Western Australia (WA) to Brenahan Exploration (BEPL), a subsidiary of Wesfarmers Chemicals, Energy & Fertilisers (WesCEF).

Under the deal, Ora Banda will sell a 65% stake in its mineral rights on the Davyhurst tenement package for a cash consideration of A$26m ($16.5m) and a 2% royalty.

Ora Banda and BEPL will also form a 65:35 JV to advance exploration work on the large unexplored Davyhurst tenement package.

BEPL will have the option to solely fund $15m of exploration work over a period of three years to increase its stake in the JV to 80%.

Ora said it is “free carried” from any discovery to completion of a definitive feasibility study (DFS) over the area that is applicable to that DFS.

Ora Banda managing director Luke Creagh said: “The Davyhurst tenement package is very large and has never had any sustained or modern exploration programmes, given its disjointed and under-capitalised historical ownership.