Aurumin Ltd (ASX:AUN) and its wholly owned subsidiary, Aurumin Dimer Pty Ltd, has completed the divestment of its Mt Dimer Project, with Beacon Minerals Ltd (ASX:BCN) taking over the asset.
The companies have been in talks for a few months and the sale allows Aurumin to unlock value from the Mt Dimer mining tenements, significantly reduce the convertible note and maintain some upside from both exploration and future production.
AUN will receive cash consideration of $3 million, alongside a 2% smelter return royalty on gold production above 12,000 ounces and all other minerals.
The Mt Dimer tenements included in the sale are: M77/427, M77/428, M77/957, M77/958, M77/965, P77/4568; L77/0083, L77/0135, L77/0147, L77/328 (application), L77/329 (application), L77/330 (application), L16/135 (application).
The terms and conditions of the Tenement Sale Agreement are consistent with those announced by Aurumin on October 18, 2023.
The Mt Dimer Project area is in the Yilgarn Shire, about 120 kilometres northeast of the town of Southern Cross in Western Australia and 113 kilometres to the northwest of Beacon’s Jaurdi processing plant.
Beacon will start drilling in March 2024.
Focus on Sandstone
Aurumin recently expanded its position adjacent to the Sandstone Gold Project, which boasts 881,000 ounces of gold, through the acquisition of three new tenements.
The first of these, E57/1294, adjoins Aurumin's Central Sandstone mining tenements to the northeast and features the Hacks Creek Structure, extending north-northwest along its entire length.
Additionally, tenements E57/1302 and E57/1371 further bolster Aurumin's presence along the greenstone trend, which is home to the Bellchambers, Bulchina and Golden Raven mineralisation sites.
Significantly, E57/1371 encompasses the historic Muriel Chapman mine, which, during its early 20th-century operations, processed 106 tonnes of ore with an average gold content of 15.1 grams per tonne, resulting in a yield of 51.5 ounces of gold.
Aurumin's managing director Brad Valiukas said of its Sandstone aims, "We remain committed to generating critical mass for future production at Sandstone.”