Aurumin Limited (ASX: AUN) ('Aurumin' or the 'Company') is pleased to announce it has finalised the divestment of the Mt Palmer Project (tenements M77/406, E77/2210, E77/2423, E77/2668) to Kula Gold Limited (ASX: KGD) (Kula) announced on 30th May 2024.
The Mt Palmer Project is located 40km southeast of Southern Cross, Western Australia and is home to the Mt Palmer mine that has history of high-grade production, producing approximately 158,000 ounces of gold at 15.9g/t before ceasing commercial operations in 1944
Highlights
All Conditions Precedent to transaction have been satisfied
Key Items and Terms of Agreement 6
Aurumin has received 2.5M Kula shares, valued at $250,000 and Kula have acquired a 51% interest in
the Tenements and Mining Information
Kula to spend $1,000,000 to earn a further 29% interest over 3 years; thereafter spending will be prorate or Aurumin will dilute
Aurumin's equity position will convert to a 1% gross royalty if it dilutes to less than 10%.
If Kula elects not to proceed with the Stage 2 Earn-In, or does not satisfy the Stage 2 Earn-In Interest Condition within the 3 year period Aurumin shall be able, at its sole discretion, to purchase back a 2% Joint Venture Percentage Share in the Tenements for AU$1.00 Kula to be responsible for maintaining tenements in good standing Aurumin's Managing Director, Brad Valiukas, commented 'This is the last of our planned divestments in the Southern Cross area. We are pleased to see Kula now positioned with 51% of the Mt Palmer Project and we look forward to them increasing their stake to 80%. 'Subject to successful completions and ongoing earn in spend by JV partners, Aurumin will be positioned with a 20% interest in the Mt Palmer JV, a royalty on the Mt Dimer mining tenements for gold and silver with Beacon Minerals and the potential future royalty on the Mt Dimer exploration tenements with MinRes. 'There still remains significant potential at Mt Pamer, and we look forward to our continuing participation as Kula gives the project the attention it deserves. Aurumin's focus is at now firmly on Sandstone and generating the critical mass required for future production.'
ABOUT AURUMIN
Projects Aurumin Limited is an ASX-listed mineral exploration Company focused on the Sandstone region in Western Australia. The Sandstone Gold Operations were cornerstone by the acquisition of the Central Sandstone Gold Project by the Company in early 2022. The Central Sandstone Gold Project comprises an 881,300 ounce gold mineral resource, significant project infrastructure and an expanding tenement footprint where the Company aims to support a gold mining operation in the future.2, 3 The Company's Johnson Range Project has a Mineral Resource of 64,700 ounces at a grade of 2.51g/t Au, located midway between Southern Cross and Sandstone.1 The Birrigrin Project area was added in late 2022 and is 70km north of the Central Sandstone Gold Project. The Project has 39 mapped shafts dating to the early 1900s with recorded production grades up to 196g/t Au. In addition to the Sandstone Gold Operations, the Company has a significant landholding at its Southern Cross Operations. Mt Dimer regionally has a substantial tenure footprint with gold and iron ore potential. The Company is currently working towards completion of the sale of iron ore rights to MinRes for a combination of upfront and milestone cash payments and a $1/t royalty. 4 The Mt Dimer Mining Tenements have been divested to Beacon Minerals Limited. Historically the Mt Dimer Mining Tenements produced over 125,000 ounces of gold from open pit and underground production of approximately 600,000 tonnes @ 6.4g/t. Aurumin retains a 2% net smelter return royalty on gold production above 12,000 ounces and on all other minerals. 5 The Mt Palmer Project historically produced via open pit and underground methods, generating approximately 158,000 ounces of gold at an average grade of 15.9g/t. Aurumin has divested 51% of Mt Palmer to Kula Gold Limited, who can earn up to 80% by spending a$1M over 3 years. Aurumin can dilute to a 1% royalty on all minerals. 6 The Company is actively exploring its tenements and pursuing further acquisitions that complement its existing focus and create additional Shareholder value.
Contact:
Tel: +61 (8) 6555 2950
Email: admin@aurumin.com.au
Web: www.aurumin.com.au
AURUMIN LIMITED 
