Gold miner Brightstar Resources is set to acquire 100% of Aurumin in a scrip-based transaction, further consolidating control over Western Australia’s Sandstone region in a move both parties say will create a district-scale openpit gold development platform.

Under the terms of the binding scheme implementation deed, announced on Monday, Brightstar offers one of its own shares for every four Aurumin shares held. The deal values Aurumin at about A$60-million, implying a 21% premium to Aurumin’s last closing price of A$0.099 on July 17, and a 27% premium to its 30-day volume-weighted average price.

The combined entity is expected to emerge with 3.9-million ounces of Joint Ore Reserve Committee-compliant gold resources at 1.5 g/t gold, supported by a pro forma cash balance of about A$63-million, including A$50-million in binding commitments raised through a placement at A$0.48 a share.

“This is a compelling transaction for all stakeholders, and we believe that combining Aurumin and Brightstar represents a unique opportunity to build a Western Australian gold business of genuine scale with demonstrable upside that also de-risks future development activities and operations at Sandstone,” said Brightstar Managing Director Alex Rovira.

Aurumin’s board, which collectively owns about 16% of the company, is unanimously backing the transaction in the absence of a superior proposal and subject to a positive conclusion from an independent expert.

Aurumin MD Daniel Raihani said the consolidation is a logical step. “Given our adjacent mineral resources, this transaction makes good commercial sense for us and it’s fantastic that we have now been able to agree terms to make this consolidation a reality.”

The newly combined landholding of about 1 600 km² in the Sandstone region would form the basis for a prefeasibility study expected in the first half of calendar year 2026.

It builds on Brightstar’s previous acquisitions in the area, including Alto Metals and Gateway Mining’s Montague project, which together account for 2.4-million ounces at 1.5 g/t gold on granted mining leases.

“This transaction . . . supports Brightstar’s aggressive growth ambitions to become a multi-asset midtier WA gold producer,” Rovira said. “It is fantastic to see the strong support of highly regarded international natural resource specialist institutional investors and strategic mining participants in the raise.”

Upon completion of the schemes and placement, Brightstar shareholders (including placement participants) will own about 82% of the new entity, with Aurumin shareholders holding the remaining 18%.

The transaction remains subject to shareholder, court, and regulatory approvals, with completion targeted in late 2025.