Brightstar Resources Pursues Aurumin Acquisition to Consolidate Sandstone Assets

Brightstar Resources (ASX:BTR) has entered into a scheme implementation deed with Aurumin (ASX:AUN) for Brighstar to acquire 100 percent of Aurumin’s issued capital.

The companies agreed on arrangement terms in June, underlining how the merge will de-risk and accelerate Brightstar’s Sandstone gold project.

Aurumin, on the other hand, owns the Central Sandstone gold project, also in the the emerging gold district of Sandstone region.

According to Brightstar, the combined assets would lead to a pro-forma total mineral resource estimate of approximately 2.4 million ounces at 1.5 grams per tonne (g/t) of gold.

“We believe that combining Aurumin and Brightstar represents a unique opportunity to build a Western Australian gold business of genuine scale with demonstrable upside that also de-risks future development activities and operations at Sandstone,” commented Brightstar Managing Director Alex Rovira.

The transaction amounts to approximately AU$0.12 per Aurumin share, with Aurumin shareholders set to receive one Brightstar share for every four shares held on the scheme’s date.

Existing Brightstar shareholders will hold 82 percent of the combined group, while Aurumin shareholders will have the remaining 18 percent.

“(This merger) will underpin the mining future of the Sandstone region. Given our adjacent mineral resources, this transaction makes good commercial sense for us and it’s fantastic that we have now been able to agree terms to make this consolidation a reality,” said Aurumin Managing Director Daniel Raihani.

In December 2024, Brighstar reported drilling results from its expanded portfolio at Sandstone and Jasper Hills, which included 21 meters at 2.86 g/t gold, including 1 meter at 26.4 g/t from 146 meters.

For Central Sandstone, Aurumin said that the resource is currently 19 million tonnes at 1.5 g/t for 885,000 kilo ounces gold . The project also contains iron, with assays returning grades up to 67 percent iron.

Subject to court approval and other customary conditions, the transaction is expected to be implemented in October.

Shares of Brightstar rose 1.03 percent a day after the announcement, closing at AU$0.49 on Tuesday, July 22.

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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Brightstar Resources is a client of the Investing News Network. This article is not paid-for content.