Aurumin Limited has divested its non-core assets for $6 million to fund its Sandstone gold project in WA’s Mid West region. Sales to Newcam, Yilgarn Iron and Sierra include its Johnson Range, Mt Dimer and Sandstone non-gold rights. The funds will drive drilling to upgrade resources at Aurumin’s Shillington, Two Mile Hill and other deposits, aligning with partner Brightstar Resources’ pre-feasibility study to advance the 885,800-ounce Sandstone project towards production.
Aurumin Limited has executed binding agreements to divest its non-core assets for $6 million, sharpening its focus on the Sandstone gold project in Western Australia’s Mid-West region.
The transactions, involving Newcam Minerals, Yilgarn Iron and Sierra Mining and Exploration, will provide non-dilutive capital to accelerate exploration and drilling at Sandstone, aligning with joint venture partner Brightstar Resources’ pre-feasibility study to advance the project’s 885,800-ounce gold resource towards production.
Brightstar is set to acquire Aurumin through a scheme of arrangment, a scrip-based deal where Aurumin shareholders will receive Brightstar shares in exchange for their Aurumin shares. The merger aims to consolidate the companies’ respective gold projects in WA’s Sandstone gold district, creating a more substantial and de-risked combined asset base with a larger resource of about 2.4 million ounces of gold.
The acquisition is a strategic move by Brightstar to accelerate the development of the combined project and build a significant, mid-tier gold producer.
The largest transaction announced today sees Newcam acquire Aurumin’s Johnson Range and Mt Dimer projects for $3.5 million. Located 180 kilometres from Sandstone, Johnson Range hosts a 64,700-ounce gold resource at 2.51 grams per tonne (g/t) gold. Mt Dimer, with its historical production of 125,000 ounces at 6.4g/t gold, retains significant exploration potential.
Newcam, an integrated mining operator with iron ore and gold interests, also purchased Aurumin’s 20 per cent stake in the Mt Palmer gold project joint venture with Kula Gold for $200,000, with $100,000 paid to Kula.
Mt Palmer, which produced 158,000 ounces at an average grade of 15.9g/t gold historically, remains under active exploration. Aurumin will retain its equity and contribute on a pro-rata basis to ongoing work at the project, Kula Gold announced today.
Newcam also acquired Sandstone Iron, which holds non-gold and non-silver mineral rights over Sandstone’s tenements. The $1 million deal prioritises Aurumin’s gold exploration rights while allowing Newcam to pursue iron ore and other minerals, supported by regular consultations to avoid conflicts.
The Sandstone tenements include banded iron formations with hematite and goethite lenses, mapped along a 6km strike, offering Newcam significant non-gold potential.
Yilgarn Iron, a subsidiary focused on reviving the Yilgarn Iron hub, acquired three Mt Dimer tenements for $300,000, with deferred payments of $500,000 upon first ore production, a $1 per tonne iron ore royalty and a 1.5 per cent gross revenue royalty on other minerals. The tenements were part of a prior deal with Mineral Resources, assigned to Yilgarn Iron.
Separately, Sierra Mining and Exploration purchased the rights to clean up residual gold at the Sandstone mill site for $500,000, with no removal of mill infrastructure.
Aurumin will use the $6 million in sale proceeds to fund drilling to upgrade resource confidence at Sandstone’s key deposits, including Shillington, Two Mile Hill, McIntyre and Plum Pudding.
The work aims to enhance the Sandstone project’s 885,800-ounce resource and support Brightstar’s pre-feasibility study, positioning Sandstone as a potential gold mining operation.
Aurumin Limited managing director Daniel Raihani said: “Signing these binding transactions provides a pathway for Aurumin to be well funded for exploration activities through and beyond completion of the scheme of arrangement with Brightstar. These divestments allow Aurumin to focus on the gold opportunities at Sandstone and also unlock value from the non-gold assets. The divestments are aligned to Aurumin and Brightstar’s development strategy to rapidly advance the greater Sandstone asset base towards production.”
The Central Sandstone project, acquired in 2022, benefits from significant infrastructure and an expanding tenement footprint. Aurumin’s streamlined portfolio now centres on Sandstone, with additional exploration at the nearby Birrigrin project, which features historical grades up to 196g/t gold.
The divestments align with Aurumin’s strategy to unleash useful value without shareholder dilution, providing near-term capital to drive exploration. Newcam’s operational expertise, Yilgarn’s investment in iron ore and Sierra’s clean-up efforts complement Aurumin’s gold-focused vision.
With gold prices exceeding $5500 per ounce, the timing supports Aurumin’s push towards production.
Kula Gold managing director Ric Dawson said he was encouraged that Aurumin was retaining its equity interest in the JV Mt Palmer gold project, which demonstrates the company’s confidence in Kula’s team maintaining a high standard of technical success.
Aurumin’s strategic $6 million asset sales position the company to fast-track its Sandstone gold project, demonstrating perfect timing in a robust gold market, with Brightstar’s imminent pre-feasibility study poised to bring rewards.
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