Auric Mining (ASX:AWJ) has entered into a binding term sheet with WIN Metals (ASX:WIN) for the partial purchase of nickel and lithium rights within the Munda Gold Project area, as well as water and other related assets access rights.
For the nickel rights, Auric, which has a market capitalisation of $33.42 million, will pay WIN $1 million, with the total purchase price being $1.2 million.
The company has paid a $100,000 deposit to WIN. An additional $600,000 will be paid at settlement, while a further $500,000 will be paid over the next 12 months.
Auric in WIN with nickel, lithium rights purchase
Managing Director Mark English says the decision by Auric to purchase from WIN the nickel and lithium rights gives the company greater control over the destiny for open pit gold mining at Munda.
“Buying the nickel and lithium rights from WIN Metals down to the 235m RL (which is approximately 150m below surface) and having sole rights to an agreed area means we have now taken another major step forward to commencing a trial pit at Munda,” English says.
“There’s not much water around Widgiemooltha, so as part of this transaction we are acquiring access to stored water in the 132 North pit from WIN, removing a significant obstacle for us.
“We’ve moved Munda along rapidly this year and this hurdle has been removed. We are planning to mine a trial pit in the first quarter of 2025.”
Auric now owns all minerals and has sole mining rights for the next eight years within the rights area. The rights area is within the Munda tenement, which is a granted mining lease containing the Munda Gold Project.
After eight years, WIN will have the right to develop a decline from within the rights area, which can include developing from within a Munda open pit and may occur concurrently with ongoing open pit mining.
Meanwhile, Auric also acquired five tenements at Spargoville and two tenement applications at Higginsville for $25,000, plus other fixed assets totalling $45,000.
Auric Mining is a gold explorer focused on Western Australia’s Widgiemooltha district.
Write to Aaliyah Rogan at Mining.com.au
Images: Auric Mining
