Aurumin Ltd (ASX:AUN) has executed a binding term sheet with Polaris Metals Pty Ltd, a subsidiary of Mineral Resources Ltd (ASX:MIN) for the sale of iron ore rights over four of Aurumin’s Mt Dimer exploration tenements.
The sale of the rights is a strategic move for Aurumin, allowing the company to streamline its focus on gold exploration and mining operations while capitalising on the value of its iron ore assets.
Location and significance
The Mt Dimer exploration tenements, integral to this transaction, are some 120 kilometres northeast of Southern Cross. The strategic importance of this deal for Polaris lies in the tenements’ proximity to Mineral Resources’ Carina iron ore mine.
The sale encompasses exploration licence E77/2662 and three exploration licence applications – E77/2974, E77/2983 and E77/2985.
The agreement sets out a series of payments to Aurumin, including an initial cash consideration of $250,000 and subsequent progress payments potentially totalling up to A$1 million.
Additionally, Aurumin will receive a A$1.00 per tonne royalty on exported Iron Ore.
The completion of this sale is subject to several conditions, including the grant of exploration licences and requisite regulatory approvals. Investors are advised to note that while the term sheet is binding, the sale remains conditional on these prerequisites.
About Aurumin Limited
Aurumin focuses on two primary project areas in Western Australia: the Sandstone Gold Operations and the Southern Cross Operations.
The Sandstone Project boasts a significant gold mineral resource, and the Johnson Range Project is known for its substantial gold resource. The addition of the Birrigrin Project area further enhances Aurumin’s portfolio.
The Southern Cross operations include the historical high-grade production centres of Mt Dimer and Mt Palmer, both with notable past gold production figures.