Brightstar Resources (ASX:BTR) said on Thursday (November 20) that the Supreme Court of Western Australia has approved its scheme of arrangement to acquire gold-focused Aurumin (ASX:AUN).
The companies first announced merger discussions toward the end of June, saying that a deal would consolidate their respective tenements in the Central Sandstone region of Western Australia.
They entered into a scheme implementation deed in mid-July.
Brightstar owns the Sandstone gold project in the area, while Aurumin owns the Central Sandstone gold project.
“This is the first time in over a decade the Sandstone Greenstone Belt has been consolidated under one ownership, with production last occurring in Sandstone when the gold price was less than AU$1,000 per ounce,” commented Brightstar Managing Director Alex Rovira in Thursday’s press release.
Brightstar is a Western Australia-focused gold miner currently producing at Second Fortune and Fish, its two owner-operated gold mines located at its Laverton hub. The assets produced 7,002 ounces during the September quarter.
In addition to the Laverton hub, Brightstar has the Menzies hub and the Sandstone hub, where its Sandstone project is situated. As of the company’s September quarter report, three drill rigs were targeting infill and extension drilling for Sandstone’s existing mineral resource of 883,000 ounces, as well as early stage greenfields expansion work.
The mineral resource for Aurumin’s Central Sandstone project stands at 19 million tonnes at 1.5 grams per tonne (g/t) for 885,000 ounces gold. The project also contains iron, with assays returning grades of up to 67 percent iron.
According to the companies, a consolidated greater Sandstone gold project would have a pro forma total mineral resource of approximately 2.4 million ounces at 1.5 g/t gold. The group total mineral resource is also set to increase to 3.9 million ounces at 1.5 g/t gold, with a resource upgrade targeted for release in the first half of 2026.
“The development of our Menzies, Laverton, and Sandstone Gold Projects is central to delivering on our vision and positioning Brightstar as an emerging mid-tier Western Australian gold producer,” Rovira added.
The scheme between Brightstar and Aurumin is set to be effective on Friday (November 21).
The implementation date is set for December 2, with Aurumin expected to delist from the ASX on December 3.
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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: Brightstar Resources is a client of the Investing News Network. This article is not paid-for content.
