Mineral explorer Aurumin (ASX:AUN) has struck a deal to acquire private company Kurnod as a means to expand its footprint at the Sandstone Project in Western Australia.
Kurnod holds exploration tenement applications E57/1294 and E57/1302, which lie adjacent to existing tenure at Aurumin’s 881,000-ounce gold project.
As consideration for the acquisition, Aurumin will pay $32,087 in cash and 1 million Aurumin shares at a deemed issue price of $0.03, and it will grant the sellers a 1% net smelter return royalty.
Commenting on the acquisition, Aurumin Managing Director Brad Valiukas says: “We are pleased to be further expanding our footprint in the Sandstone region with these tenement applications, including a great addition directly adjacent to Aurumin’s existing mining tenements at Sandstone.
“The tenements, when granted, will provide additional exploration opportunity as we focus on generating critical mass for future production at Sandstone”
The tenements, when granted, will provide additional exploration opportunity as we focus on generating critical mass for future production at Sandstone.”
Aurumin says the exploration tenement applications are largely untested by drilling, with only 6 drillholes known to have been completed to date at E57/1302.
The company is currently in the process of compiling and validating data for the project areas, including data sourced from open-file reports and from the historical Troy Resources Database inherited as part of the Sandstone Project acquisition.
Aurumin is an ASX-listed exploration company focused on its 2 project areas in Western Australia. Its portfolio of assets includes the Sandstone, Johnson Range, Birrigrin, Mt Dimer, and Mt Palmer projects.
As of 31 March 2023, Aurmin had $1.757 million cash and cash equivalents at hand, according to its latest quarterly report published on 21 April 2023. The company has a $7.645 million market capitalisation.
Write to Aaliyah Rogan at Mining.com.au
Images: Aurumin Ltd
