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Highlights
Brightstar Resources and Aurumin explore a merger focused on Central Sandstone gold tenements
Discussions continue under a non-binding scheme of arrangement
Combined resource base and infrastructure outlook expected to strengthen regional development
Gold exploration activity in Western Australia could see a significant consolidation as Brightstar Resources Ltd (ASX:BTR) and Aurumin Ltd (ASX:AUN) enter discussions regarding a merger under a proposed scheme of arrangement. Both companies operate within the ASX 300 and are aiming to unite their holdings in the Central Sandstone region, one of Australia's historically significant gold mining areas.
The discussions remain non-binding, with the preliminary terms structured around a scrip arrangement. The move is viewed as a collaborative step toward forming a unified asset base under Brightstar, enhancing scale and operational cohesion across a broader Sandstone footprint.
Proposed Merger to Align Gold Projects in Sandstone Region
Brightstar’s interest in acquiring Aurumin is driven by the strategic location and complementary nature of the two companies' tenement holdings. Both firms operate in close proximity within the Sandstone region, where active exploration programs and resource delineation have been underway. The companies have highlighted that a consolidated platform could support a more streamlined development path and capitalise on existing granted mining leases.
Aurumin’s main assets include the Sandstone Operations, Mt Dimer Project, and Mt Palmer Project — all of which host legacy production sites and have remained a focus for exploration activity. Brightstar, based in Perth, manages gold projects in Laverton and Menzies and is already advancing efforts to expand its project pipeline.
Resource Upside and Infrastructure Planning Drive Engagement
A combined portfolio would create a significant gold resource located on established mining tenure, with both parties noting the strategic alignment in long-term development objectives. Additionally, the companies expect the merger to support the case for regional infrastructure development, which remains a key hurdle in remote operations.
The companies believe that unified ownership may lead to more efficient capital deployment and exploration planning, unlocking new geological corridors within the Sandstone belt. Collaborative due diligence is currently underway, with updates expected as the evaluation progresses.
Event Participation and Corporate Presence
Brightstar Resources has also confirmed its attendance at the upcoming Noosa Mining Investor Conference, scheduled to be held at Peppers Noosa Resort. The event serves as a platform for mining sector participants to showcase corporate developments and engage with stakeholders. The presence of Brightstar at the event coincides with increased corporate activity and ongoing discussions surrounding its proposed combination with Aurumin.
