Auric Mining says its acquisition of nickel and lithium rights at the Munda gold project near Widgiemooltha helps pave the way for a new open-pit mining operation to start early next year.
Auric told the ASX on Tuesday the binding term sheet signed with WIN Metals — formerly known as Widgie Nickel — gave it sole mining rights at Munda for the next eight years to 150m below surface.
The $1.2 million deal also secures sole access water rights for the next three years and joint access water rights for a further five years.
Auric managing director Mark English said the company now had greater control over its destiny at Munda.
“Buying the nickel and lithium rights from WIN Metals down to the 235m RL and having sole rights to an agreed area means we have now taken another major step forward to commencing a trial pit at Munda,” he said.
“There’s not much water around Widgiemooltha, so as part of this transaction we are acquiring access to stored water in the 132 North pit from WIN, removing a significant obstacle for us.
“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.”
WIN Metals managing director and chief executive Steve Norregaard said the deal worked for both companies.
“We have no intention of standing in (Auric’s) 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,” he said.
Auric has expanded its financial war chest during the past year with mining campaigns at the Jeffreys Find gold mine near Norseman.
It banked $4.46 million from its first campaign of 2024 at the mine following last year’s inaugural campaign that generated 9741oz of gold and almost $10m in revenue, and a maiden adjusted profit of $2.8m in the 2023 calendar year.
Its second gold milling campaign of the year at FMR Investments’ Greenfields mill near Coolgardie is expected to start this week.