Aurumin Board Unanimously Backs Brightstar Merger Amid Key Approvals Ahead

Strategic Consolidation in Western Australia's Sandstone

Brightstar Resources Limited (ASX, BTR) and Aurumin Limited (ASX, AUN) have formalised a binding Scheme Implementation Deed under which Brightstar will acquire 100% of Aurumin’s issued capital. This move consolidates two adjacent gold exploration and development companies to create a district-scale open pit development opportunity in the Sandstone region of Western Australia.

The scheme consideration offers Aurumin shareholders one Brightstar share for every four Aurumin shares held, implying a value of approximately $0.12 per Aurumin share. This represents a significant premium of around 20-27% over Aurumin’s recent trading prices, reflecting confidence in the combined entity’s growth prospects.

Capital Raising to Accelerate Growth

Brightstar has secured binding commitments to raise $50 million through a placement priced at $0.48 per share, slightly below its recent volume-weighted average price. Importantly, this capital raising is not conditional on the completion of the scheme, providing financial flexibility to fast-track exploration and development activities across the consolidated Sandstone asset base.

Following completion of the scheme and placement, the combined group will boast pro-forma JORC Mineral Resources of approximately 3.9 million ounces of gold at 1.5 grams per tonne, alongside a strong cash position of around $63 million. The strategic landholding will span roughly 1,600 square kilometres, positioning the group as a significant mid-tier gold producer in Western Australia.

Board Support and Next Steps

The Aurumin board, representing about 16% of shares, unanimously recommends the scheme to shareholders, subject to the absence of a superior proposal and a positive independent expert opinion. Aurumin directors intend to vote their shares in favour, and the company is working to secure statements of support from unassociated shareholders holding at least 30% of shares.

The transaction is subject to customary conditions including court approval, shareholder and optionholder meetings scheduled for mid-October 2025, and the release of a scheme booklet in mid-September. Brightstar’s Managing Director Alex Rovira highlighted the transaction as a compelling opportunity to build scale and de-risk development at Sandstone, while Aurumin’s Managing Director Daniel Raihani emphasized the commercial logic and ongoing exposure for Aurumin shareholders.

Looking Ahead, Development and Market Impact

The combined entity aims to release a pre-feasibility study on the consolidated Sandstone asset base in the first half of 2026, underpinning a district-scale open pit gold development. The transaction follows Brightstar’s recent acquisitions of the Sandstone Gold Project and Montague Project, further consolidating the region’s gold resources.

With existing production hubs at Laverton and Menzies providing cash flow, the combined group targets becoming a meaningful participant in the Western Australian gold sector within four to five years. The enhanced scale and diversified asset base are expected to improve market liquidity and investor appeal, potentially supporting a re-rating of the company.