Aurumin updates market on sale of Mt Dimer gold project to Beacon Minerals

Junior explorer Aurumin (ASX: AUN) has confirmed that Beacon Minerals (ASX: BCN) has completed the due diligence part of an acquisition agreement over the Mt Dimer mining leases and miscellaneous licences in Western Australia.

The companies are still required to execute access agreements, assign or novate all relevant third-party agreements, obtain necessary regulatory, statutory and stock exchange approvals and release all security interests over the tenement package before the transaction is able to proceed.

Under the terms of the sale, Aurumin will receive a 2% net smelter return royalty on future gold production above 12,000 ounces and on all other minerals.

The divestment of the Mt Dimer tenement package will allow Aurumin to pay back part of a $6.4 million convertible note taken on with the acquisition of the Sandstone assets in early 2022.

Conditions completed

Aurumin managing director Brad Valiukas said the conditions precedent were being completed to plan.

“We are pleased to have executed the more detailed tenement sale agreement and are now working through the mechanics for completion,” he said.

“This continues to be a good outcome for both parties, allowing us to unlock value from the Mt Dimer mining tenements, significantly reduce the convertible note, and maintain some upside from exploration and future production.”

Mt Dimer sale

In October, Aurumin announced it would sell the advanced Mt Dimer project to Beacon for a cash consideration of $3 million.

The tenement package hosts the high-grade Lightning and Golden Slipper deposits and is located in the Yilgarn Shire, approximately 120 kilometres north-east of Southern Cross.

Mt Dimer has produced more than 600,000 tonnes at 6.4 grams per tonne gold for 25,000 ounces from open pit and underground operations and has a substantial tenure footprint.

It is located 113 kilometres north-west of Beacon’s Jaurdi gold processing plant near Coolgardie.

Beacon acquisitions

The Mt Dimer acquisition follows Beacon’s acquisition of the Geko tenements in December from private company Geko Pit Pty Ltd and the MacPhersons Reward project in mid-2021 from Primary Gold Pty Ltd.

The acquisitions form part of a strategy to extend the mine life at the Jaurdi gold development and complement the company’s current operations.