Aurumin handballs Mt Dimer leases to Beacon

Aurumin (ASX:AUN) has signed a binding sales agreement with Beacon Minerals (ASX:BCN) over the Mt Dimer mining tenements in Western Australia. 

Under the terms of the deal, Beacon will pay Aurumin $3 million cash upon the completion of the acquisition, alongside a 2% net smelter return royalty on gold production above 12,000 ounces and all other minerals from Mt Dimer. 

The conditions precedent to the sale include Beacon completing due diligence to its satisfaction, executing formal sale, royalty, and access agreements, and obtaining all necessary regulatory, statutory, and ASX approvals. 

Aurumin, which has a market capitalisation company of $7.75 million, says the conditions precedent are to be satisfied on or before 15 December 2023. 

In conjunction with the sale agreement, Beacon has unconditionally committed to a $500,000 placement in Aurumin within 5 days in exchange for an exclusivity period for its purchase. 

This will start with the signing of the agreement and finish with the completion or termination to finalise due diligence and other conditions precedent on the Mt Dimer tenements. 

Pursuant to the placement, Beacon will subscribe for 20 million shares in Aurumin at a price of $0.025, subject to a voluntary escrow period of 6 months. 

Aurumin says the funds received from the sale will be used to reduce the outstanding balance of the convertible note held by Collins Street Asset Management. 

Following today’s news, Aurumin shares spiked 19.23% to close at $0.031 this afternoon (18 October). 

Aurumin Managing Director Brad Valiukas says the company is looking forward to seeing Beacon put Mt Dimer into production and processing the ore at its Jaurdi Gold Project.

“Importantly, this divestment will allow Aurumin to pay back a majority of the convertible note, currently with $4.4 million outstanding, that was taken on with the acquisition of the Sandstone assets in early 2022. 

With the planned divestment of the Mt Dimer mining tenementsthe company will have a clearer focus on our Sandstone Operations as a production target

We will continue to progress options to clear the remainder of the convertible note. With the planned divestment of the Mt Dimer mining tenements, and the recent sale of Karramindie, the company will have a clearer focus on our Sandstone Operations as a production target.”

Aurumin is a gold-focused explorer. It owns the Sandstone Gold Operation in Western Australia.

As of 30 June 2023, the company had $1.416 million cash and cash equivalents at hand, according to its latest quarterly report. On 31 August 2023, Aurumin completed the Karramindie Project sale for a $500,000 cash consideration.

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Images: Aurumin
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Written By Aaliyah Rogan
Relocated from the East Coast in New Zealand to Queensland Australia, Aaliyah is a fervent journalist who has a passion for storytelling. When Aaliyah isn’t writing stories, she is either spending time with friends and family or down at the beach.