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Bryah is to pay A$120,000 cash for the mining lease and manganese rights to ground next door to the recently opened Horseshoe Flats manganese mine.
A further $340,000 is due if the option exercised, with half the consideration to be paid in cash.
Horseshoe South was last operated in 2008-2011 by Mineral Resources.
Aside from its overall exploration potential, Bryah is keen to assess the potential of low-grade stockpiles at Horseshoe South to be "monetised".
The manganese price is up about 50% over the past 12 months, with both supply and demand issues trending the right way for producers.
The positive macro outlook includes potential increased demand from the battery sector.
Bryah raised A$5 million last year and listed on the ASX on the back of its copper and gold assets.
Shares in Bryah were up 15% to 15c in afternoon trade, capitalising the company at $8.5 million.
Shares in the company are up about 50% over the past couple of weeks.
Bryah started the current quarter with $3 million cash.
