Aurumin (ASX:AUN) has entered into a binding transaction with privately held Newcam Minerals, to divest non-core assets totalling $6 million, as part of the company’s strategy to focus on the Sandstone Gold Project in Western Australia.
The funds will enable Aurumin to begin drilling and exploration activities designed to increase the resource confidence classification of various open pit and underground deposits at Sandstone.
Additionally proceeds from the divestment will further enable the company to advance the project simultaneously with Brightstar Resources’ (ASX:BTR) Prefeasibility Study (PFS) – ensuring all deposits in the consolidated Sandstone Project are encapsulated within the pro-forma PFS.
The assets being divested include non-gold or silver rights, the Johnson Range and Mt Dimer projects, a 20% joint venture interest in the Mt Palmer Gold Project, three tenements which form part of the Mt Dimer Project, and clean-up rights for the Sandstone Mill.
Managing Director Daniel Raihani says the divestment allows Aurumin to focus on gold opportunities at Sandstone.
“The divestments are aligned to Aurumin and Brightstat’s development strategy to rapidly advance the greater Sandstone asset base towards production,” Raihani says.
The Sandstone Operations, acquired by the company in early 2022, comprises several assets including the Central Sandstone, Johnson Range, Birrigrin, and Mt Palmer projects, as well as the Mt Dimer mining tenements.
Aurumin is a Western Australian explorer and developer with a primary focus on gold.
Write to Aaliyah Rogan at Mining.com.au
Images: Aurumin
