Aurumin focused on advancing Sandstone following Mt Dimer sale
Melbourne, Victoria
|
October 19, 2023 03:15 PM Eastern Daylight Time
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
