Brightstar Resources Limited (ASX: BTR) and Aurumin Limited (ASX: AUN) have entered into a Scheme Implementation Deed (SID), marking a significant step towards consolidating their gold assets in the Sandstone region of Western Australia. Brightstar Resources is a West Australian gold explorer, developer, and producer. Aurumin Limited is focused on the exploration and development of its gold projects in Western Australia.
Under the agreement, Brightstar will acquire 100% of Aurumin’s issued capital through a Share and Option Scheme of Arrangement. Aurumin shareholders will receive 1 Brightstar share for every 4 Aurumin shares held, implying a value of approximately $0.12 per Aurumin share. The Aurumin Board, representing approximately 16% of Aurumin’s shares, has unanimously recommended the Share Scheme, with directors intending to vote in favour, absent a superior proposal and subject to a favourable Independent Expert’s Report.
Brightstar has secured binding commitments to raise $50 million at $0.48 per share via a placement to expedite growth initiatives. Post-acquisition and placement, the pro forma entity will boast a substantial JORC (2012) Mineral Resource of 3.9Moz @ 1.5g/t Au and a robust cash position of approximately $63 million. This consolidation establishes a district-scale open-pit development opportunity across a strategic 1,600km² landholding in Sandstone, with a pre-feasibility study targeted for release in the first half of calendar year 2026.
The transaction remains subject to customary conditions, including shareholder and court approvals, and regulatory clearances. Existing Brightstar shareholders (including placement participants) and Aurumin shareholders are expected to hold approximately 82% and 18%, respectively, of the combined group. Both companies believe this merger will unlock significant value and de-risk future development activities in the Sandstone Gold district.
