Aurumin Ltd (ASX:AUN) is expected to complete the acquistion of the Sandstone Gold Project within a week, now that all conditions precedent under the Share Purchase Agreement (SPA) with Middle Island Resources Ltd (ASX:MDI) (MDI) have been satisfied or waived.
The sale will see MDI secure a further 3.6% of AUN through subscription via a sub underwrite of the rights issue.
MDI accepted the opportunity to sub-underwrite AUN's rights issue on a priority basis but capped at $1 million and is expected that pursuant to the sub-underwriting, it will acquire 3.6% of AUN to augment the circa 21.5% it is to acquire under the SPA at completion.
“MDI is confident the sale will complete. I would like to thank all of MDI and AUN shareholders for their support for this sale. MDI is pleased to have conditionally secured a further 3.6% of AUN by supporting the rights issue,” Middle Island executive director Brad Marwood said.
A significant step forward for AUN
The 784,000-ounce Sandstone Gold Project comes with an existing mineral resource and substantial infrastructure.
The project is around 520 kilometres northeast of Perth and is on a sealed highway between the mining towns of Mt Magnet and Leinster in the East Murchison Mineral Field of Western Australia.
It contains indicated and inferred mineral resources of 22 million tonnes at 1.1 g/t gold for 748,300 ounces, with a granted tenure covering 112 square kilometres, including two granted mining licences and a non-operating 500,000 tonnes per annum carbon-in-leach (CIL) processing plant.