Auric Mining Limited settles Union Jack purchase, adds 102,000 inferred gold ounces

Auric Mining Limited ASXAWJ said in its Oct. 7 announcement that it settled its Union Jack gold lease purchase on Oct. 6 for A$6.5 million cash, with A$3 million in shares subject to shareholder approval. The acquired lease adds 102,000 inferred gold ounces, lifting Auric's stated resource inventory 51 per cent to 301,000 ounces.

Auric shares were up 2.22 per cent at A$0.23 on the ASX as of 2:49 p.m. AEDT on Wednesday, according to the ASXAWJ quote.

The updated securities notice names privately held Eazyoz Resources Pty Ltd as the seller and sets the initial consideration at 12.5 million Auric shares. They carry a deemed price of A$0.24 each and are due within five business days after a shareholder vote, rather than at settlement.

Auric could owe another A$7 million if Union Jack's gold resource reaches specified thresholds. The company has booked drilling for November 2026, while its securities notice lists a proposed Dec. 2 shareholder meeting for the share issue.

The settlement announcement puts Union Jack's inferred resource at 3.12 million tonnes grading 1.02 grams of gold per tonne, using a 0.5 gram per tonne cut-off. The estimate was first announced in September; Auric says the underlying assumptions have not materially changed. The acquired ounces are a mineral resource, and the company still plans mining studies and production scheduling.

The milestone payments are tied to JORC resource totals of 125,000, 150,000 and 200,000 ounces on the lease, according to the Oct. 7 notice. The respective payments are A$2 million, A$2 million and A$3 million. Each may be paid in cash, shares or both, with the equity portion capped at 75 per cent by agreement, or 50 per cent without one.

The maximum proposed milestone issue is 21.875 million shares, priced at the higher of a five-day volume-weighted average or A$0.24. Including the initial consideration, Auric may issue up to 34.375 million shares if the milestones are met and approvals secured. At 2:49 p.m. AEDT on Wednesday, the ASXAWJ quote listed 187.89 million Auric shares outstanding. The proposed 12.5 million initial shares would add about 6.7 per cent to that count.

"This granted mining lease perfectly fits our strategy of acquiring near-term, gold production assets within trucking distance of the Burbanks Mill," managing director Mark English said in the Oct. 7 release.

Union Jack lies about 15 kilometres from Auric's Burbanks processing plant near Coolgardie in Western Australia. Auric says it plans to reopen the mill in early 2028, but the October settlement notice gives no post-purchase cash balance or production schedule for the acquired lease.

Auric expects to begin infill and extension drilling at Union Jack in November 2026.