Gold explorer Aurumin (ASX:AUN) has completed the $3 million sale of a handful of tenements and licence applications in Western Australia to fellow ASX-listed junior Beacon Minerals (ASX:BCN).
The completion of the transaction comes as Aurumin launches a $1.25 million placement to top up its balance sheet and close out its convertible note balance with Collins St Asset Management.
Under the placement, Aurumin will issue 50 million shares at $0.025 apiece to Collins St, Middle Island Resources, and 7 Enterprises. Each share will come with one free attaching option — subject to shareholder approval — exercisable at $0.06 and expiring on 22 December 2026.
The $0.025 placement price represents a premium of 14% to Aurumin’s last closing price of $0.02. Aurumin shares have spiked 18.18% to $0.026 as of 12:15pm AEDT.
The company first flagged its sales deal with Beacon back in October, under which Aurumin handballed its Western Australian tenements that comprised its Mt Dimer project for $3 million in cash and a 2% net smelter return royalty on gold production above 12,000 ounces and all other minerals from the area.
The company says the cash boost from the sale has already helped it reduce its convertible note balance to $1.071 million.
Managing Director Brad Valiukas says the funds from the placement and the Mt Dimer sale deal are a ‘good outcome’ for the company.
“The company is now net-debt-free and in a position to close out the remaining convertible note with available cash. In addition, we maintain upside from the Mt Dimer mining tenements from future exploration and production.
I look forward to commencing the new year with a clean balance sheet and a clear focus on advancing our flagship 960koz Sandstone Gold Operations and generating the critical mass for future production.”
“I look forward to commencing the new year with a clean balance sheet and a clear focus on advancing our flagship 960koz Sandstone Gold Operations and generating the critical mass for future production”
Aurumin’s Sandstone Project lies 12km from the township of Sandstone, also in Western Australia, and comprises granted tenure covering 185km-square, including 3 granted mining licences.
Write to Joshua Smith at Mining.com.au
Images: Aurumin
