PERTH: Aurumin Ltd. (ASX:AUN) has executed binding agreements to divest all non-core assets in a series of transactions totaling A$6 million, enabling the company to fast-track development of its flagship Sandstone Gold Project in Western Australia.
The divestment package includes the sale of Sandstone non-gold/silver rights, the Johnson Range and Mt Dimer projects, and Aurumin’s joint venture interest in Mt Palmer. Buyers include Newcam Minerals Pty Ltd, Yilgarn Iron Pty Ltd, and Sierra Mining and Exploration.
Aurumin Managing Director Daniel Raihani said the deals align with the company’s strategy to consolidate and advance the Sandstone asset base in tandem with Brightstar Resources’ pre-feasibility study.
“These transactions provide a pathway for Aurumin to be well funded for exploration activities through and beyond completion of the Scheme of Arrangement with Brightstar,” Raihani said.
Key transactions include:
- A$1M sale of Sandstone non-gold/silver rights to Newcam
- A$3.5M sale of Johnson Range and Mt Dimer projects to Newcam
- A$200K sale of Aurumin’s 20% JV interest in Mt Palmer to Newcam
- A$300K sale of three Mt Dimer tenements to Yilgarn Iron, with additional royalties
- A$500K sale of Sandstone Mill clean-up rights to Sierra Mining
Aurumin will use the proceeds to fund drilling and exploration aimed at upgrading resource confidence across deposits including Shillington, Two Mile Hill, Mcintyre, and Plum Pudding.
The company retains gold rights over Sandstone tenements and will remain the registered holder, with Newcam indemnifying Aurumin for operational liabilities.
Aurumin’s Sandstone operations currently host a combined mineral resource of 950,500 ounces of gold, with additional upside from surrounding tenements and historical production centers.