Aurumin Limited (ASX: AUN), "Aurumin" or the "Company", is excited to announce the Company has successfully entered into a binding sale agreement with Beacon Minerals Ltd ("Beacon"). This agreement pertains to the sale of the Mt Dimer mining leases and miscellaneous licences collectively referred to as the Mt Dimer Mining Tenements. Notably, these tenements are home to the high-grade Lightning and Golden Slipper Deposits, situated about 120km north-east of Southern Cross.
Highlights of the Agreement:
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Exclusivity Clause: For an exclusivity period starting with the Sale Agreement's signing and ending upon completion or termination, Beacon has unconditionally committed to a $500,000 placement in Aurumin within five days. This placement is to finalize due diligence and other essential conditions about the Mt Dimer Mining Tenements.
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Sale Details: The following mining tenements will be divested by Aurumin: M77/427, M77/428, M77/957, M77/958, M77/965, P77/4568, L77/0083, L77/0135, L77/0147, L77/328 (application), L77/329 (application), L77/330 (application), L16/135 (application).
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Key Sale Terms: Aurumin will receive a cash payment of $3.0M upon completion. Additionally, the company will be entitled to a 2% net smelter return royalty on gold production exceeding 12,000 ounces and on all other minerals originating from the Mt Dimer Mining Tenements.
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Conditions Preceding the Sale: The sale is contingent upon:
- Beacon's successful completion of its due diligence.
- Execution of the formal sale agreement, royalty agreement, and necessary access agreements.
- Proper assignment or novation of pertinent third-party agreements.
- Procurement of all crucial regulatory, statutory, and ASX approvals.
- The release of all security interests concerning the Mt Dimer Mining Tenements, excluding current royalties.
All conditions precedent must be fulfilled on or before 15 December 2023, or another mutually agreed-upon date. Investors are urged to be cautious since, despite the Sale Agreement being binding, its realization is still conditional on various precedent conditions, including the execution of a formal sale agreement.
Placement Details:
Beacon will purchase 20,000,000 shares in Aurumin at a price of $0.025 per share (totaling $500,000). This acquisition is subject to a voluntary escrow period lasting six months, ending before 24/10/2023. The shares will be issued as per the Company's available placement capacity following Listing Rule 7.1A.
About us:
Aurumin Limited is an ASX-listed mineral exploration Company focused on two project areas in Western Australia.
Contact details:
Jane Morgan