Brightstar and Aurumin Eye Strategic Merger to Consolidate Sandstone Gold Assets

June 30, 2025 02:54 PM AEST | By Team Kalkine Media

Brightstar and Aurumin Eye Strategic Merger to Consolidate Sandstone Gold Assets — Image source: Shutterstock

Strategic Consolidation for Greater Scale

If completed, the merger would result in a combined mineral resource estimate of 2.4 million ounces at an average grade of 1.5 grams per tonne (g/t) of gold. This strategic integration would enable the companies to jointly develop new infrastructure, unlock operational synergies, and accelerate the project timeline for the broader Sandstone gold project.

The move is expected to significantly strengthen the economic viability of the region by providing a clearer development path and increasing the potential for long-term value creation.

Proposed Terms of Agreement

Under the current proposal, Brightstar would acquire Aurumin by issuing new shares at a fixed exchange ratio—1 Brightstar share for every 4.6 Aurumin shares. This terms structure implies a value of approximately $0.117 per Aurumin share, reflecting a 17% premium to its last close and a 26% premium to its 20-day volume-weighted average price (VWAP).

The deal structure has been outlined using Brightstar’s 20-day VWAP of $0.54. Both companies are currently engaged in mutual due diligence, and no shareholder action is required at this stage.

Resource Growth and Drilling Upside

Supporting the development plan, Brightstar recently concluded a 2% gross revenue royalty agreement with Red Hill Minerals (ASX:RHI) over the 1.5Moz Sandstone Hub. In parallel, the company has been conducting extensive drilling, including an 80,000-metre program at the Indomitable Camp. Recent assays from the Musketeer deposit revealed high-grade intersections, such as 10 metres at 43.8g/t gold from 36 metres, including 1 metre at 356g/t.

Additional intercepts like 9 metres at 2.99g/t gold from 75 metres confirm the potential for continued expansion. Numerous visible gold nuggets recovered from drilling spoil suggest that near-surface mineralisation remains open along strike and at depth, presenting further upside for exploration.

Although neither company is currently part of the ASX 200 stock list, the consolidation could eventually improve their market profiles, provided the project advances through key milestones.

As this potential merger unfolds, it sets the stage for stronger regional consolidation and lays the groundwork for enhanced project delivery in Western Australia's historic goldfields.

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