PERTH: Brightstar Resources Ltd. (ASX: BTR) and Aurumin Ltd. (ASX: AUN) said Monday they are in advanced talks over a proposed merger aimed at consolidating their tenement holdings in Western Australia’s Central Sandstone region.
The potential all-scrip transaction would see Brightstar acquire Aurumin through a scheme of arrangement, with Aurumin shareholders offered one Brightstar share for every 4.6 shares held — representing a 26% premium to Aurumin’s 20-day volume-weighted average share price.
The combination, the companies say, would create a near-term development opportunity with a pro forma Mineral Resource Estimate of approximately 2.4 million ounces of gold at an average grade of 1.5 grams per tonne.
Both miners said the consolidation would reduce development risk, streamline infrastructure investments, and unlock exploration synergies across the Sandstone Gold Project, a region long viewed by analysts and industry players as ripe for merger-driven value creation.
“The logic of combining these assets has been well understood within equity markets and the mining industry,” the companies said in a joint statement.
Mutual due diligence is underway, and there is no guarantee the discussions will result in a finalized deal, they cautioned. Completion remains subject to customary conditions, including the execution of a scheme implementation deed.
Brightstar’s Managing Director Alex Rovira and Aurumin’s Managing Director Daniel Raihani reaffirmed their commitment to keeping shareholders informed as developments unfold.