Aurumin Limited has successfully entered into a binding sale agreement with Beacon Minerals Ltd — pertaining 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 120 kilometres north-east of Southern Cross.
The agreement includes an exclusivity clause which states that for an exclusivity period beginning with the Sale Agreement’s signing and ending upon completion or termination, Beacon will unconditionally commit to a $500,000 placement in Aurumin within the first five days.
The purpose of this placement is to finalise due diligence and other essential conditions regarding the Mt Dimer Mining Tenements.
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).
Aurumin will receive a cash payment of $3.0 million upon completion.
Additionally, the company will be entitled to a 2 per cent net smelter return royalty on gold production exceeding 12,000 ounces and on all other minerals originating from the Mt Dimer Mining Tenements.
The conditions on which the sale is contingent upon includes:
- 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 and investors are urged to be cautious since — despite the sale Agreement being binding — its realisation is still conditional on various precedent conditions, including the execution of a formal sale agreement.
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 October 2023.
