Aurora Minerals acquisition of up to 80% of copper-zinc project

Aurora Minerals Limited (ASX: ARM) (Aurora and Company) is pleased to advise that it has signed an Earnin and Joint Venture Agreement (Agreement) with VentureX Resources Limited (VXR) and VXR’s wholly owned subsidiaries, Jutt Resources Pty Ltd (Jutt) and VentureX Pilbara Pty Ltd (VXP), whereby the Aurora’s wholly owned subsidiary Whim Creek Metals Pty Ltd (WCM) will, on the satisfaction of various conditions precedent, acquire up to an 80% interest in the advanced-stage Whim Creek Copper-Zinc Project (Project) (Transaction) via an earn-in arrangement and enter into an unincorporated joint venture with Jutt and VXP (VXR Parties) in relation to the Project.

VXR holds 100% of both Jutt and VXP, which are the registered holders in respect of certain mining tenements (detailed below) that comprise the Project.

Highlights:

• Aurora Minerals Limited has signed an Earnin and Joint Venture Agreement (Agreement) to acquire (through its wholly owned subsidiary Whim Creek Metals Pty Ltd (WCM)) up to an 80% interest in the Whim Creek Copper-Zinc Project (Project) from VentureX Resources Limited (VentureX or VXR) (through its wholly owned subsidiaries Jutt Resources Pty Ltd (Jutt) and VentureX Pilbara Pty Ltd (VXP)) (Transaction).
• The Project includes a substantial volcanogenic massive sulphide (VMS) Mineral Resource in addition to a series of highly prospective Copper, Zinc and Gold exploration targets.
• The Project is located within a highly prospective base metal and gold belt 115 kilometres south west of Port Hedland and includes the Mons Cupri, Whim Creek, Salt Creek and Evelyn VMS deposits as well as tenements covering 18,000 hectares of the highly prospective Whim Creek and Mallina basins.
• The Project includes crushing and heap leach infrastructure that (subject to regulatory approvals) will facilitate the efficient delivery of the Company’s strategy to produce pre-concentrates and recovered metals from the newly mined ores and sorted rejects. In addition, offices, workshops and established water supplies are included in the site infrastructure.
• The Project tenure includes a substantial exploration package with exciting gold and base metal prospectivity. The package is adjacent to De Grey’s Mallina project tenure and to the north of both the DGO Gold’s Mallina tenure and the Kairos Minerals’ Skywell Project.
• Pursuant to the Agreement, WCM may acquire up to an 80% interest (JV Interest) in the Project from Jutt and VXP (VXR Parties) via an earn-in arrangement and enter into an unincorporated joint venture with the VXR Parties in relation to the Project.
• Consideration for the Transaction consists of an initial $150,000 cash deposit and up to $1.5 million in expenditure obligations to earn up to the 80% over a 15-month period, with the Company then having an additional obligation to incur a further $2.5 million of expenditure over a four year period following commencement of the joint venture to maintain the 80% interest. In addition, the Company must pay $3 million in $1 million instalments over a three-year period commencing on the second anniversary of the Transaction.
• The Company will issue a prospectus to raise up to $2 million at a price to be determined, to add to its existing cash reserves of ~$3 million and ~$2.5m in listed securities.
• The Transaction is subject to conditions, including Company shareholder approval, the Company’s re-compliance with Chapters 1 and 2 of the Listing Rules.

As part of the Transaction, Aurora Minerals intends to undertake a capital raising under a full form prospectus to raise $2 million (Public Offer Shares) at a price to be determined (Public Offer). Funds raised, together with existing cash reserves and cash from the sale of liquid assets, will be spent to deliver a feasibility study and rectify/upgrade onsite infrastructure as well as further exploration expenditure. The feasibility study will focus on de-risking ore sorting and rejects heap leaching while confirming key metallurgical and mining design data.

The Transaction is subject to satisfaction of various conditions precedent, including Company shareholder approval and the Company re-complying with the admission and quotation requirements of Chapters 1 and 2 of the Listing Rules.

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