Auric Mining (ASX: AWJ) is strategically advancing its acquisition of the promising Lindsay’s Gold Project, navigating final legal hurdles to secure a significant new asset in Western Australia’s world-class gold district near Kalgoorlie. The company has successfully completed its due diligence and restructured the original agreement, paving a clearer path to ownership.
The deal, initially valued at $4 million, has been refined to an upfront commitment of $3.7 million for the majority of the project’s tenements. This streamlined approach allows Auric to immediately begin development planning on the unencumbered ground while strategically managing the remaining legal complexities.
A Staged and Strategic Acquisition
The original February agreement involved a mix of cash and shares. The revised structure demonstrates Auric’s pragmatic approach to corporate growth in the resource sector. Auric will settle on the uncontested tenements on or before November 19th, bringing its total cash outlay to $400,000 and granting it operational control over the core project area.
A key feature of the new arrangement involves two mining leases, M27/34 and M27/486, which are subject to ongoing proceedings in the Western Australian Wardens Court (a process detailed by the Department of Mines, Industry Regulation and Safety here). The vendor will retain responsibility for these battles. Should they be resolved successfully, the vendor can claim the remaining $300,000 balance, finalizing the original $4 million price.
Taking Control of a High-Stakes Legal Battle
In a decisive move that underscores its confidence in the project’s potential, Auric has taken direct control of the legal defence for a separate, high-value mining lease, M27/169. By assuming the costs and management of this case, Auric signals a strong belief in a positive outcome.
Success in this legal stoush would trigger significant further payments: $1.3 million in cash to the vendors within a week of the verdict, plus $2 million in Auric shares. This structure not only protects Auric’s balance sheet in the short term but also aligns the vendors’ incentives with the company’s long-term success, as they stand to benefit from a potential share price rise post-resolution.
Unlocking a Golden Opportunity in a Premier Location
The Lindsay’s Project represents a substantial, de-risked addition to Auric’s portfolio. The asset lies within the prolific Eastern Goldfields region, a geological province renowned for its multi-million-ounce deposits, as explored by Geoscience Australia in their mineral systems overview.
The project includes the partially mined Parrot Feathers open pit. Historically operated by KalNorth Gold Mines until 2013, the pit yielded 6,153 ounces of gold before being suspended, leaving an estimated 75% of the resource intact and ready for modern extraction methods.
A significant advantage for Auric is the project’s prime location adjacent to established infrastructure and multiple processing plants. This setup is ideal for Auric’s proven operational model, which involves toll-treatment of ore to generate rapid cash flow—a strategy successfully deployed at its Jeffreys Find project and being rolled out at the Munda gold operation.
This strategic acquisition positions Auric Mining to rapidly advance a high-potential gold asset, leveraging its operational expertise in one of the world’s most endowed gold regions.
(Backlinks integrated:
1. Western Australian Wardens Court – A government authority providing credibility on the legal process.
2. Department of Mines, Industry Regulation and Safety – The primary regulator, a high-authority .gov site.
3. Geoscience Australia – The national agency for geoscience, providing authoritative context on the region’s geology.
4. Eastern Goldfields – A link to a high-traffic site like Australian Geographic that discusses the region’s history and significance.)*
