Brightstar Deal and Asset Divestments Put Aurumin’s Future on the Line

Strategic Acquisition Agreement

Aurumin Limited (ASX – AUN) has formalised a significant step in its corporate evolution by entering into a Scheme Implementation Deed with Brightstar Resources Limited. Under this agreement, Brightstar will acquire 100% of Aurumin’s issued capital through a share and option scheme, offering Aurumin shareholders one Brightstar share for every four Aurumin shares held. This all-scrip transaction aims to consolidate the Sandstone gold district, combining the strengths and tenements of both companies to accelerate project development and unlock exploration synergies.

Non-Core Asset Divestments Fuel Exploration

In parallel with the merger announcement, Aurumin has successfully divested all non-Sandstone Gold Project assets, raising $6 million in cash. These sales included the transfer of non-gold mineral rights, several tenements, and mill clean-up rights to various parties such as Newcam Pty Ltd, Yilgarn Iron Pty Ltd, and Sierra Mining and Exploration Pty Ltd. The proceeds from these divestments have been earmarked to fund a multi-rig drilling campaign at the Sandstone Gold Project, focusing on upgrading the resource confidence of key deposits like Shillington, Two Mile Hill, McIntyre, and Plum Pudding.

Advancing the Sandstone Gold Project

The drilling program, which commenced during the quarter, is designed to complement Brightstar’s pre-feasibility study by ensuring all deposits within the consolidated Sandstone Project are fully incorporated. The campaign involves approximately 5,000 metres of reverse circulation drilling and 2,400 metres of diamond drilling, targeting both open pit and underground deposits. This initiative is critical for de-risking the project and providing the geological and geotechnical data necessary to advance towards production.

Corporate and Financial Position

At the end of the quarter, Aurumin reported a cash position of $0.6 million. However, subsequent to quarter-end, the company received approximately $4 million from completed asset sales, bolstering its liquidity. The Board, which holds around 16% of Aurumin shares, unanimously recommends the scheme, with substantial shareholders and optionholders indicating their intention to support the transaction, subject to the absence of a superior proposal and a positive independent expert opinion.

Looking Ahead

The proposed merger and asset sales represent a strategic consolidation of the Sandstone gold region, positioning the combined entity to accelerate development and potentially create significant shareholder value. As the scheme booklet has been lodged with regulators and dispatched to shareholders, the next critical milestones will be the shareholder vote and subsequent court approvals. Meanwhile, the drilling results and integration plans will be closely watched by the market.