Aurumin Ltd (ASX:AUN) reports that it has completed the sale of its non-core Karramindie Project assets in Western Australia’s Goldfields region to Lithium Resources Investments Pty Ltd, a subsidiary of Mineral Resources Ltd (ASX:MIN).
Proceeds to reduce debt
As announced in early August, Aurumin received cash consideration of $500,000 for the assets.
The funds received will be used to reduce the outstanding balance of the convertible note held by Collins Street Asset Management to $4.4 million.
Along with the reduced outstanding balance, the cash covenant to be maintained under the convertible note agreement has been reduced to $1 million and Collins Street have been issued 20 million options that are exercisable at 6c and expire on August 31, 2026.
Core focus areas
Now that Aurumin has offloaded the non-core Karramindie Project, it can concentrate its efforts on its two project areas in Western Australia.
Aurumin is actively exploring its tenements and pursuing further acquisitions that complement its existing focus, now made easier since with the sale of Karramindie Project assets.
Sandstone Gold Operations
Planning and preparation is underway for first pass exploration drilling at the Sandstone Gold Operations, which comprises the Sandstone Project, the Johnson Range Project, and the Birrigrin Project.
Sandstone has an 881,300-ounce gold mineral resource, significant project infrastructure and an expanding tenement footprint where it aims to support a gold mining operation.
The company’s the Johnson Range Project, with its mineral resource of 64,700 ounces at a grade of 2.51 g/t, located midway between Southern Cross and Sandstone.
The Birrigrin Project area was added in late 2022 and is 70 kilometres north of the Central Sandstone Project. It has 39 mapped shafts dating to the early 1900s with recorded production grades up to 196 g/t gold.
Southern Cross Operations
In addition to the Sandstone Gold Operations, Aurumin has a significant landholding at its Southern Cross Operations, including two historical high-grade production centres, Mt Dimer and Mt Palmer.
The Mt Dimer Project produced more than 125,000 ounces of gold from open pit and underground production of about 600,000 tonnes at 6.4 g/t and has a substantial tenure footprint.
The historical Mt Palmer Project produced via open pit and underground methods, generating around 158,000 ounces of gold at an average grade of 15.9 g/t.
Pre-development activities are underway for a Phase 1 mining operation at Mt Dimer, involving the mining of shallow open pits at the high-grade Lightning and Golden Slipper deposits.