Aurumin Ltd (ASX:AUN) has received a non-binding and indicative offer (NBIO) from Brightstar Resources Ltd (ASX:BTR) in relation to a potential joint venture at the Central Sandstone Project in Western Australia.
In response, Aurumin’s Board of Directors has commenced a process to consider the NBIO alongside its advisors and says it will act in what it considers to be the best interests of the company and its shareholders.
No need for any action
In a statement, Aurumin said: “There is no certainty that the NBIO will result in any transaction.
“Aurumin shareholders do not need to take any action at this time in relation to the NBIO.”
The company said it would continue to keep shareholders and the market informed of material developments.
Shares in Aurumin have been as much as 15.39% higher intraday to $0.06.
About Central Sandstone
The company's Sandstone Operations were cornerstoned by the acquisition of the Central Sandstone Project in early 2022.
Central Sandstone comprises an 881,300-ounce gold mineral resource, significant project infrastructure and an expanding tenement footprint where the company aims to support a gold mining operation in the future.
READ: Aurumin bolsters exploration efforts with movement on iron ore and gold joint ventures
The Central Sandstone Project also has DSO iron ore potential, that the company is looking to advance in parallel with the gold resources.
A discontinuous 6-kilometre strike of banded iron outcrops has been identified, with potential widths of 5 to 40 metres and a peak grade of 67% Fe from rock chips.
Newcam iron ore agreement
Aurumin this month entered into a binding agreement with Newcam Minerals Pty Ltd to explore the iron ore potential at Central Sandstone.
This encompasses an exclusive six-month option to earn a 50% interest in the iron ore rights on granted mining leases.
In return, Newcam will pay A$500,000 upfront and fund 50% of exploration expenditures during the option period.
Should Newcam exercise the option, it will pay an additional A$500,000 and provide up to A$5 million in funding for production start-up activities.