Aurumin Ltd (ASX:AUN) has entered into an agreement with Lithium Resources Investments Pty Ltd, a subsidiary of Mineral Resources Limited (MinRes), to sell its Karramindie Project assets.
The strategic sale of tenement E15/1769, about 20 kilometres east of Coolgardie townsite in the Goldfields of Western Australia, will enable AUN to reduce holding costs and refocus its attention on its core gold assets.
Aurumin will use the funds raised from the sale to reduce the outstanding balance of the Convertible Note held by Collins Street Asset Management Pty Ltd.
Refocused priorities
Aurumin is focused on the Sandstone Gold Project, which comprises an 881,300-ounce gold mineral resource, significant project infrastructure and an expanding tenement footprint where it aims to support a gold mining operation.
Also in the mix is 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.
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.
Aurumin is actively exploring its tenements and pursuing further acquisitions that complement its existing focus, which will be made easier should the sale of its Karramindie Project assets go through.
What’s involved in the sale?
- Cash consideration of $500,000.
- MinRes completing and being satisfied with its due diligence enquiries.
- Obtaining all necessary regulatory approvals.
- Completion to occur within two months.