Aurumin Limited (ASX: AUN) has announced it will divest all its non-Sandstone gold assets in a series of transactions set to generate $6 million in cash. Aurumin is an ASX-listed mineral exploration company focused on the Sandstone region in Western Australia. The strategic decision aims to streamline the company’s focus on the Sandstone Gold Project and is supported by Brightstar Resources.
The divestment includes the sale of Sandstone non-gold/silver rights, the Johnson Range and Mt Dimer Projects, Aurumin’s 20% Joint Venture interest in the Mt Palmer Gold Project, and three tenements forming part of the Mt Dimer Project, along with Sandstone Mill clean-up rights. Newcam Minerals Pty Ltd will acquire the Sandstone Iron rights, Johnson Range and Mt Dimer Projects, and the Mt Palmer JV interest. Yilgarn Iron will acquire the three Mt Dimer tenements, while Sierra Mining and Exploration will handle the Sandstone Mill clean-up.
The net proceeds from these sales will enable Aurumin to commence drilling and exploration activities at the Sandstone Gold Project. These activities are designed to increase the resource confidence classification of various open pit and underground deposits, including Shillington, Two Mile Hill, McIntyre, and Plum Pudding. The funds will also allow Aurumin to advance the Sandstone Gold Project concurrently with Brightstar’s Pre-Feasibility Study (PFS).
Daniel Raihani, Aurumin’s Managing Director, stated that these transactions will provide funding for exploration activities and allow Aurumin to focus on gold opportunities at Sandstone, unlocking value from non-gold assets. He added that the divestments align with Aurumin and Brightstar’s development strategy to rapidly advance the greater Sandstone asset base towards production.
