Auric Mining (ASX:AWJ) said on Tuesday (August 27) that it has completed the purchase of WIN Metals’ (ASX:WIN) nickel, lithium and other associated metal rights at the Munda gold project.
Auric now has “sole mining rights at Munda for the next 8 years in a specified area.”
The company will pay a total of AU$1.2 million under the agreement, with AU$700,000 so far sent to WIN Metals. Auric will provide the remaining AU$500,000 to the company over the next eight months.
The deal was announced on July 23, and gives Auric the exclusive right to mine within the Auric rights area for eight years; the company has ongoing mining rights beyond that period as well. In addition, the firm owns all minerals to a depth of 150 metres within the Auric rights area, and has access to in-pit water for mining operations.
According to Auric’s press release, it has also acquired all the mineral interests in five tenements at Spargoville and two tenement applications at Higginsville through the agreement with WIN Metals.
“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,” explained Auric Managing Director Mark English when the transaction was announced last month.
“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,” he added.
Steve Norregaard, managing director and CEO of WIN Metals, also spoke positively about the agreement.
“This is a good logical deal for both parties,” he said in a separate Tuesday announcement.
“Auric get(s) a clean run to exploit their gold resource without the complication of dealing with a third party and WIN secure(s) some funding without relinquishing the lion’s share of the Munda nickel resource … a WIN WIN.”
Munda is one of Auric’s three main projects, with the other two being Jeffreys Find and Spargoville. The 200,000 ounce asset is located at Widgiemooltha, 100 kilometres from Kalgoorlie in Western Australia.
Auric is planning to potentially mine a trial pit at Munda in the first quarter of 2025.
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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: Auric Mining is a client of the Investing News Network. This article is not paid-for content.
