Aurumin focused on advancing Sandstone following Mt Dimer sale
October 20, 2023 at 12:46 am IST
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Aurumin Ltd (ASX:AUN) managing director Brad Valiukas tells Proactive the company is set to sell its Mt Dimer mining leases for a total of $3 million. Mt Dimer hosts the high-grade Lightning and Golden Slipper deposits, which are 120 kilometres northeast of Southern Cross. The company has secured a binding sale agreement with Beacon Minerals Ltd. As part of the agreement, Beacon has unconditionally pledged to invest $500,000 via a placement in the company within a five-day timeframe. Aurumin will receive $3 million on completion of the sale and a 2% net smelter return royalty on the Mt Dimer mining tenements on gold production above 12,000 ounces and on all other minerals.
“This is a good outcome for both parties, allowing Aurumin to unlock value from the Mt Dimer Mining Tenements on completion and have continued upside exposure with the royalty," Valiukas said.
"I look forward to Beacon putting Mt Dimer into production and processing the ore at Jaurdi. We still see plenty of upside potential at Mt Dimer and we are maintaining the exploration ground around the Mining Tenements and in the wider area.
“Importantly, this divestment will allow Aurumin to pay back a majority of the convertible note, currently with $4.4 million outstanding, that was taken on with the acquisition of the Sandstone assets in early 2022. We will continue to progress options to clear the remainder of the convertible note.”
Contact Details
Melbourne, Victoria
Jonathan Jackson
+61 413 713 744
Jonathan@proactiveinvestors.com
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Copyright (c) 2023 TheNewswire - All rights reserved., source Press Releases
Aurumin Limited is an Australia-based company focused on exploring and developing advanced gold projects. The Company has two project areas in Western Australia. The Sandstone Gold Operations consists of Sandstone Project and Johnson Range Project. In addition to the Sandstone Gold Operations, the Company has a significant landholding at its Southern Cross Operations, which includes Mt Palmer. The Sandstone Project is located 12 kilometer (km) south of the township of Sandstone, approximately 520 km northeast of Perth, and is accessed via a sealed highway between the mining towns of Mt Magnet and Leinster in the East Murchison Mineral Field of Western Australia. The Sandstone Project comprises of granted tenure covering 182 square kilometers (km2), including three granted mining licenses. The Johnson Range Project consists of approximately nine km2 of tenements. The Mount Palmer Project is located around 15 km east of the Marvel Loch townsite in the Shire of Yilgarn, Western Australia.