Auric Buys Specific Mineral Rights from WIN for $1.2M
Released
Released
Announcement PDF
ASX Announcement
auricmining
23 July 2024
ASX: AWJ | ACN 635 470 843
Munda Gold Project
Auric Buys Specific Mineral Rights
and related assets from WIN Metals for $1.2M.
HIGHLIGHTS
•
Binding Term Sheet executed on 22 July 2024.
•
Milestone agreement improves pathway to mining a trial pit at Munda Gold
Project, potentially in Q1 2025.
•
Auric now owns all mineral rights, down to 235m RL, (approximately 150m below
surface) over planned mining area.
•
Purchase price totals $1.2 Million, including $1.00 Million, for the nickel rights.
•
Binding Term Sheet includes sole access to stored water in the 132 North pit by
Auric for 3 years from settlement date and shared access for a further 5 years.
•
Acquisition includes 7 tenements or applications.
•
$100,000 deposit paid to WIN. Additional $600,000 payable at settlement.
Further payments totalling $500,000 to be paid over next 12 months.
MANAGEMENT COMMENTS
Auric Mining. Managing Director, Mark English, said: “We now have greater
control over our destiny for open pit gold mining at the Munda Gold Project.
“Buying the nickel and lithium rights from WIN Metals down to the 235m RL (which is
approximately 150m below surface) and having sole rights to an agreed area
means we have now taken another major step forward to commencing a trial pit
at Munda.
“There’s not much water around Widgiemooltha, so as part of this transaction we
are acquiring access to stored water in the 132 North pit from WIN, removing a
significant obstacle for us.
“WIN Metals has been pragmatic about the negotiation. We have reached a highly
satisfactory agreement for Auric shareholders.
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+61 8 9548 9997 | info@auricmining.com.au | Level 1, 1 Tully Road, East Perth, WA 6004 | www.auricmining.com.au
ASX Announcement 23 July 2024
Auric Mining Limited (ACN 635 470 843)
“We’ve moved Munda along rapidly this year and this hurdle has been removed.
We are planning to mine a trial pit in Q1 2025,” said Mr English.
WIN Metals. Managing Director & Chief Executive Officer, Steve Norregaard, said:
“We wish Auric well in its ambition to mine at Munda Gold Project.
“We have no intention of standing in their way and have reached an equitable
agreement to sell our nickel and lithium rights, within a specified area, at the Munda
Gold Project and minor non-core assets.
“It’s a great result for both companies,” said Mr Norregaard.
THE ANNOUNCEMENT
Auric Mining Limited (ASX: AWJ) (Auric) together with WIN Metals Ltd (ASX: WIN) (WIN
Metals or WIN) are pleased to announce that the two parties have successfully
executed a Binding Term Sheet on 22 July 2024 for the partial purchase of WIN’s
nickel and lithium rights within the Munda Gold Project area, water access rights
and other related assets, to Auric.
For the nickel rights component the agreed price was $1.0 Million with the total initial
consideration under the Binding Term Sheet being $1.2 million.
Auric now owns all minerals and has sole mining rights for the next eight years down
to the 235m RL, ( approximately 150m below surface) within the Auric Rights Area,
refer Figure 1. The Auric Rights Area is within the Munda tenement, M15/87, a
granted mining lease containing the Munda Gold Project.
After eight years, WIN will have the right to develop a decline from within the Auric
Rights Area. That right can include development from within a Munda open pit and
may occur concurrently with ongoing open pit mining.
Additionally, and following an agreed sterilisation drilling process, Auric will have the
right to establish mining infrastructure, including mining landforms, such as a waste
dump on the designated sterilisation area.
Auric has also acquired sole access water rights for the next three years and joint
access water rights for a further five years for water contained in the pit at 132 North
which is a short distance from Munda. In addition Auric will pay WIN $1.50 per kL for
water used during the term of the contract.
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+61 8 9548 9997 | info@auricmining.com.au | Level 1, 1 Tully Road, East Perth, WA 6004 | www.auricmining.com.au
ASX Announcement 23 July 2024
Auric Mining Limited (ACN 635 470 843)
As part of the deal Auric has also acquired 5 tenements at Spargoville and 2
tenement applications at Higginsville for $25,000 plus other fixed assets totalling
$45,000.
WIN has a Right of First Refusal (ROFR) to reacquire all of the mineral rights at the
Munda tenement.
Auric has paid a deposit totalling $100,000 to WIN at signing of the Binding Term
Sheet, of which $25,000 is non-refundable.
At settlement, due on or before 29 July 2024, Auric will pay WIN a further $600,000,
with additional payments of $300,000 on 1 December 2024 and $200,000 on 1 June
2025.
Table 1: Acquisition costs detailed in Binding Term Sheet
Items
Costs (ex GST)
Nickel rights
$1,000,000
Lithium rights
$ 30,000
Water access rights
$ 100,000
Tenements and Applications
$ 25,000
Fixed assets
$ 45,000
TOTAL (ex GST)
$1,200,000
Table 2: Indicative Timetable
Date
Details
22 July 2024
Executed Binding Term Sheet
29 July 2024
Expected date for execution of Long Form Agreements
12 August 2024
If Long Form Agreements not executed parties commit to
further negotiation
13 September 2024
If settlement not completed, Binding Term Sheet
terminates. Auric to be refunded $75,000 of deposit.
Table 3: Tenements and Applications to be acquired
Tenements
Locations & Rights
P15/5905
Spargoville area. Auric currently holds gold rights
P15/5906
Spargoville area. Auric currently holds gold rights
MLA 15/1889
Spargoville area. Auric currently holds gold rights
P15/6408
Spargoville area. Auric currently holds gold rights
ELA 15/1665
Spargoville area. Auric currently holds gold rights
ELA 15/1864
Higginsville area. Auric holds no rights
ELA 15/1929
Higginsville area. Auric holds no rights
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+61 8 9548 9997 | info@auricmining.com.au | Level 1, 1 Tully Road, East Perth, WA 6004 | www.auricmining.com.au
ASX Announcement 23 July 2024
Auric Mining Limited (ACN 635 470 843)
Figure 1: The mineral rights acquired by Auric down to the 235m RL are within the
white border of tenement M15/87. Potential to establish additional mining
infrastructure and landforms within yellow-dashed border.
FORWARD LOOKING STATEMENTS
This Announcement may contain forward-looking statements which are identified
by words such as ‘may’, ‘could’, ‘should’, ‘believes’, ‘estimates’, ‘targets’,
‘expecting’, or ‘intends’ and other similar words that involve risks and uncertainties.
These statements are based on an assessment of present economic and operating
conditions, and on a number of assumptions regarding future events and actions
that, as at the date of this Announcement, are considered reasonable. Such
forward-looking statements are not a guarantee of future performance and involve
known and unknown risks, uncertainties, assumptions, and other important factors,
many of which are beyond the control of the Company, the Directors, and the
management. The Directors cannot and do not give any assurance that the results,
performance, or achievements expressed or implied by the forward-looking
statements contained in this Announcement will actually occur and investors are
cautioned not to place undue reliance on these forward-looking statements.
This announcement has been approved for release by the Board.
Corporate Enquiries
Mark English
Managing Director
Auric Mining Limited
+61 409 372 775
menglish@auricmining.com.au
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+61 8 9548 9997 | info@auricmining.com.au | Level 1, 1 Tully Road, East Perth, WA 6004 | www.auricmining.com.au
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