- Junior gold explorer Aurumin (AUN) completes its purchase of the Sandstone gold project in WA from Middle Island Resources (MDI)
- Located 520 kilometres north-east of Perth, the project contains a mineral resource estimated at 784,000 ounces of gold from multiple deposits
- Aurumin paid a total of $12 million for the project, consisting of $6 million in cash and 30 million shares valued at 20 cents each
- The company says preparations for drilling at Sandstone are well under way
- AUN shares 10 per cent higher at 16.5 cents
Aurumin (AUN) shares have jumped after the company announced it had completed its acquisition of the Sandstone gold project in Western Australia from Middle Island Resources (MDI).
The binding share purchase agreement, announced in mid-December last year, saw Aurumin take over ownership of the now former Middle Island subsidiary Sandstone Operations, which owns the project.
Located 520 kilometres north-east of Perth, the Sandstone project includes two granted mining licenses and a mineral resource estimated at 784,000 ounces of contained gold from multiple deposits.
It also comes with an old 500,000 tonnes of ore per annum-capacity plant, associated infrastructure, operating licences and camp facilities at the nearby town of Sandstone.
Managing Director Brad Valiukas said the acquisition represented a “significant” step for Aurumin and “provides an excellent opportunity to add value as we advance the project and build a mining company”.
“The 784,000-ounce central Sandstone mineral resource will be added to by our existing 65,000-ounce Johnson Range project, together becoming the starter assets for our Sandstone operations.
“Our top priority at Sandstone will be advancing the Shillington-Two Mile Hill complex and defining the underground potential. Permitting and plans for drilling are well under way.”
The company said in addition to the existing mineral resource base, there were several other exploration targets it was keen to start work on.
Aurumin paid a total of $12 million for the project, consisting of $6 million in cash and 30 million shares valued at 20 cents each.
Middle Island has emerged from the deal as a major shareholder in Aurumin.
AUN shares were trading 10 per cent higher at 16.5 cents at 3:53 pm AEDT.