Aurumin’s New JV and Board Shake-Up Signal Critical Growth Phase Amid Exploration Risks
Aurumin Limited has entered a potentially lucrative joint venture with Newcam Minerals for iron ore rights worth up to $7 million, while advancing gold exploration with significant drilling at its Central Sandstone Project.
- Exclusive option for 50:50 iron ore joint venture with Newcam Minerals valued up to $7 million
- Completion of 1,476m RC drilling targeting high-grade gold extensions at Plum Pudding and Shillington
- Successful $2.2 million private placement to fund ongoing exploration and development
- Board reshuffle with Daniel Raihani appointed Managing Director and two new Non-Executive Directors
- Ongoing gold exploration progress at Mt Palmer through joint venture with Kula Gold
Iron Ore Joint Venture Agreement
Aurumin Limited (ASX: AUN) has taken a significant step to unlock value from its Central Sandstone Project by entering into a binding term sheet with Newcam Minerals Pty Ltd. This agreement grants Newcam an exclusive six-month option to conduct due diligence and earn a 50% interest in the iron ore rights across key granted mining leases. The joint venture, potentially worth up to $7 million, includes upfront cash payments, shared exploration expenditure, and a $5 million loan facility to support production start-up, repayable from operating profits.
Newcam’s established iron ore operations in Western Australia and access to Geraldton Port infrastructure position the partnership well to advance the iron ore potential of Aurumin’s tenements. The iron ore rights cover a discontinuous 6km strike of banded iron formation with rock chip samples grading up to 67% Fe, highlighting the prospectivity of the area.
Gold Exploration and Drilling Progress
During the quarter, Aurumin completed a 1,476-metre reverse circulation drilling program focused on resource extension and infill at the Plum Pudding and Shillington gold deposits within the Central Sandstone Project. Notably, the drilling followed up on a previous high-grade intercept at Plum Pudding of 18 metres at 25.8 g/t gold, targeting a thickened mineralised corridor. At Shillington, the program tested priority exploration targets including structural controls to high-grade mineralisation and previously untested BIF-hosted zones.
Meanwhile, exploration at the Mt Palmer Project, operated through a joint venture with Kula Gold Limited, yielded encouraging shallow gold intercepts such as 4 metres at 3.02 g/t and 6 metres at 8.3 g/t gold. These results support ongoing efforts to delineate economically viable gold resources in the region.
Corporate Developments and Capital Raising
The quarter also saw important leadership changes with the appointment of Daniel Raihani as Managing Director, alongside new Non-Executive Directors John Ingram and Ben Broom. These changes follow the resignations of founding Managing Director Brad Valiukas and Director Shaun Day, marking a new chapter for Aurumin’s executive team.
Financially, Aurumin successfully raised $2.2 million through a private placement at $0.055 per share, strongly supported by institutional investors and directors. These funds are earmarked to accelerate exploration and project development activities. The company also terminated its At-the-Market equity facility with Acuity Capital, streamlining its capital structure ahead of upcoming milestones.
Outlook and Strategic Focus
Aurumin’s strategic focus remains on building critical mass for future gold production at Sandstone while advancing iron ore opportunities in parallel. The upcoming assay results from the recent drilling campaign will be closely watched by the market, as they will provide clarity on the potential to expand existing gold resources. The joint venture with Newcam represents a pivotal opportunity to unlock value from iron ore assets, contingent on Newcam exercising its option.
With a closing cash position of $1.5 million and committed director participation in forthcoming shareholder approvals, Aurumin is positioned to maintain momentum across its portfolio. The company’s diversified approach across gold and iron ore projects in Western Australia underscores its ambition to become a significant regional producer.
Bottom Line?
Aurumin’s dual-track strategy in gold and iron ore, backed by fresh capital and leadership, sets the stage for pivotal exploration results and JV decisions in 2025.
Questions in the middle?
- Will Newcam Minerals exercise its option to formalise the iron ore joint venture and commence production funding?
- What will the assay results from the Central Sandstone drilling reveal about resource expansion potential?
- How will Aurumin’s new leadership influence the pace and direction of exploration and development activities?