Aurumin Limited has secured $6 million through divestments of non-core assets, enabling a sharper focus on advancing its flagship Sandstone Gold Project. The strategic sales to Newcam Minerals and others aim to fund exploration and support Brightstar’s pre-feasibility study.
- Divestment of non-core assets raises $6 million in cash
- Sales include non-gold/silver rights and key projects like Johnson Range and Mt Dimer
- Funds earmarked for drilling to increase resource confidence at Sandstone
- Partnership with Brightstar to integrate exploration with pre-feasibility study
- Streamlining asset portfolio to focus on gold production potential
Strategic Divestments to Fund Core Focus
Aurumin Limited (ASX – AUN) has taken a decisive step to sharpen its strategic focus by executing binding agreements to divest all non-core assets, raising $6 million in cash. This move is designed to accelerate exploration and development activities at its flagship Sandstone Gold Project in Western Australia.
The divestments include the sale of non-gold and silver mineral rights at Sandstone to Newcam Minerals Pty Ltd for $1 million, as well as the sale of the Johnson Range and Mt Dimer projects for $3.5 million. Additional transactions involve the sale of Aurumin’s 20% interest in the Mt Palmer joint venture and certain tenements to Yilgarn Iron and Sierra Mining and Exploration, collectively streamlining Aurumin’s asset base.
Funding Exploration and Resource Confidence
The proceeds from these sales will be directed towards ramping up drilling and exploration programs aimed at increasing the confidence classification of several open pit and underground deposits within the Sandstone Project, including Shillington, Two Mile Hill, McIntyre, and Plum Pudding. This enhanced resource definition is critical as Aurumin works alongside Brightstar Resources, which is conducting a pre-feasibility study (PFS) on the consolidated Sandstone asset base.
By focusing capital and operational efforts on Sandstone, Aurumin aims to expedite the pathway towards gold production. The divestments also unlock value from non-gold assets that were previously peripheral to the company’s core strategy.
Partnerships and Project Integration
Newcam Minerals, a fully integrated mining operator with experience in iron ore and gold projects, will take over several non-core assets, including the iron ore rights at Sandstone and the Johnson Range and Mt Dimer projects. Yilgarn Iron, a subsidiary focused on rejuvenating iron ore operations in the region, has acquired key tenements with royalty arrangements benefiting Aurumin.
These partnerships not only provide Aurumin with immediate capital but also reduce operational complexity, allowing the company to concentrate on its gold exploration and development objectives. Aurumin’s Managing Director, Daniel Raihani, highlighted that these transactions align with the company’s and Brightstar’s aggressive development strategy to advance the Sandstone Project rapidly.
Looking Ahead
With the divestments expected to complete by mid-October 2025, Aurumin is positioned to commence a new phase of exploration and resource development. The company’s focus on increasing resource confidence and integrating its efforts with Brightstar’s PFS could set the stage for a more robust and streamlined gold production project in the near future.
Bottom Line?
Aurumin’s $6 million divestment deal clears the way for focused gold exploration at Sandstone, setting up a pivotal growth phase.
Questions in the middle?
- How will the accelerated drilling results impact the timeline for Sandstone’s production?
- What are the potential risks if the divestment transactions face delays or fail to complete?
- How will Aurumin’s partnership with Brightstar influence future capital raising or project development?