Perth, Australia – 10 October 2024 | Aurumin Limited (ASX: AUN) (“Aurumin” or “the Company”) is pleased to announce the execution of a binding term sheet with Newcam Minerals Pty Ltd (“Newcam”) for an exclusive option to conduct due diligence and earn a 50% interest in the iron ore rights at Aurumin’s Central Sandstone Project in Western Australia. The agreement could see Newcam contribute up to A$7 million towards the project, including an option fee, joint venture payments, and funding of production start-up activities.
Highlights:
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Exclusive Option Agreement: Newcam has been granted a six-month exclusive option to conduct due diligence and potentially earn a 50% interest in the iron ore rights of the Central Sandstone Project. The agreement covers iron ore rights on granted mining leases M57/654, M57/128, and M57/129.
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Option Fee and Contributions: In consideration for the option, Newcam will:
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Pay A$500,000 cash to Aurumin Limited.
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Fund 50% of the mutually agreed exploration expenditure on the tenements during the option period.
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Joint Venture Structure: If Newcam exercises the option, it will:
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Pay an additional A$500,000 cash to acquire a 50% interest in the joint venture.
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Provide a loan of up to A$5 million to the joint venture for production start-up activities, to be repaid from operating profits.
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Pay Aurumin an additional A$1 million if a JORC-compliant Mineral Resource Estimate of greater than 3 million tonnes with an average grade of 60% Fe is defined.
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Brad Valiukas, Managing Director of Aurumin, commented: “The iron ore at Sandstone is a bonus, and this potential joint venture with Newcam can accelerate our activity, reduce the need for funding and remove logistical hurdles for export, de-risking the project overall. Importantly for Aurumin shareholders, by joint venturing the iron ore we maintain far more upside and potential profit compared to a royalty based transaction.”
“Aurumin remain focussed on generating the critical mass required for future gold production at our Sandstone Operations. The next step for both the iron ore and gold is drilling and we can now get going on a combined programme.”
About Newcam Minerals Pty Ltd:
Newcam is a private company with a strong presence in the iron ore sector in Western Australia. It operates iron ore assets in the Mid West, including mining, haulage, and export from Mt Gould through the Geraldton Port. Newcam also recently acquired the JWD Wiluna assets from CuFe Limited (ASX: CUF) and has bulk storage capacity and logistics agreements at Geraldton Port, enhancing its ability to support the Sandstone Project’s development.
Brad Valiukas
Managing Director
[email protected]
Jane Morgan
Investor Relations
[email protected]
About us:
About Aurumin Limited:
Aurumin Limited (ASX:AUN) is an Australian gold exploration company with advanced projects. With a portfolio of strategically chosen, historically significant projects in the Western Australia's leading gold region. The Company is actively exploring its tenements and pursuing further acquisitions that complement its existing focus and create additional Shareholder value.
Contact details:
Jane Morgan
Jane Morgan Management
Investor Relations
[email protected]