Auric buys specified mineral rights from WIN for $1.2m

Auric Mining (ASX: AWJ) and WIN Metals (ASX: WIN) have signed a binding term sheet for the partial sale of WIN’s nickel and lithium rights within the Munda gold project in WA.

The total initial transaction is $1.2m with the nickel rights component making up $1m of that.

Auric now owns all minerals and has sole mining rights for the next eight years down to the 235m RL, around 150m below surface.

After the eight years are up, WIN will have the right to develop a decline from within Auric’s rights area. WIN’s right can include the development from within a Munda open pit and may occur simultaneously with ongoing open pit mining.

Furthermore, and following an agreed sterilisation drilling process, Auric will have the right to establish mining infrastructure, including mining landforms such as waste dump.

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 lies a short distance from Munda.

As a result, Auric will pay WIN $1.50kl for water used during the contract.

Auric managing director Mark English commented on the term sheet.

“We now have greater control over our destiny for open pit gold mining at the Munda gold project,” he said.

“Buying the nickel and lithium rights from WIN Metals and having sole rights to an agreed area means we have now taken another major step forward to commencing a trial pit at Munda.

“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.”

As part of the agreement, Auric has also acquired five tenements at Spargoville and two tenement applications at Higginsville for $25,000, plus other fixed assets totalling $45,000.

At settlement, which is expected on or before July 29, 2024, Auric will pay WIN a further $600,000, with additional payments of $300,000 on December 1, 2024 and June 1, 2025. Auric has already paid a $100,000 deposit to WIN on the signing of the term sheet.

WIN Metals managing director and chief executive Steve Norregaard says the agreement is a great result for both companies.

“We wish Auric well in its ambition to mine at the Munda gold project,” he said.

“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.”