Aurumin Limited (ASX: AUN), a mineral exploration company focused on the Sandstone region in Western Australia, has announced it will divest all non-Sandstone gold assets in a series of transactions to raise $6 million in cash. The company has executed binding transaction documents for these divestments, supported by Brightstar Resources, to rapidly advance the Sandstone Gold Project. Aurumin intends to use the net proceeds from these non-core asset sales to commence drilling and exploration activities. These activities aim to increase the resource confidence classification of various open pit and underground deposits, including Shillington, Two Mile Hill, McIntyre, and Plum Pudding.
The deal includes several key transactions. Aurumin will sell Sandstone non-gold/silver rights, the Johnson Range and Mt Dimer Projects, and Aurumin’s 20% Joint Venture interest in the Mt Palmer Gold Project, all to Newcam Minerals Pty Ltd for a combined $4.7 million. Additionally, Yilgarn Iron will acquire three tenements forming part of the Mt Dimer Project for $300,000 upfront, deferred payments of $500,000 on first ore production, a $1/tonne royalty on iron ore, and a 1.5% gross revenue royalty on all other minerals. Sierra Mining and Exploration will purchase the Sandstone Mill clean-up rights for $500,000.
Aurumin’s Managing Director, Daniel Raihani, stated that these transactions provide a pathway for Aurumin to be well-funded for exploration activities. The divestments allow Aurumin to focus on gold opportunities at Sandstone while unlocking value from non-gold assets. These strategic moves align with Aurumin and Brightstar’s development strategy to rapidly advance the greater Sandstone asset base towards production.
The divestment also enables Aurumin to advance the Sandstone Gold Project simultaneously with Brightstar’s Pre-Feasibility Study. This will ensure all deposits in the consolidated Sandstone Project are encapsulated within the pro forma PFS, accelerating the path to gold production and maximising shareholder value.
