News blog

Aurum Mining

• BY: Andrew Hore |
• POSTED: 22/10/2013 |

Spain-focused gold and tungsten explorer Aurum Mining says that Plymouth Minerals Ltd has exercised its option to acquire a majority stake in the Morille tungsten project. 

Plymouth can acquire 80% for €300,000 in cash and shares. So far, €25,000 has been paid and €225,000 will be paid when the deal is completed. The other €50,000 will be paid in shares 12 months after the date of the deal. Plymouth can acquire the remaining 20% for £2.5m. The project has a book value of £269,000.

Aurum has 60% of a licence in the Zamora Province, which includes the Pino del Oro gold project, and a 54% interest in the Salamanca province permit areas, which include the Cabeza de Caballo and Peralonso projects. The stakes were acquired from joint venture partner Ormonde Mining.

Aurum says that drilling at Peralonso suggests that this could host a sizeable gold bearing structure that is near to the surface. The mineralised area may stretch into the Alajar licence. Drilling of the Cabeza de Caballo prospect has started. This will help to assess the regional structure.

At 2.25p a share, Aurum is valued at £3.18m. There was £698,000 in the bank at the end of March 2013 and costs have been reduced but the cash may not last long unless Aurum holds back on investment.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFOctober2013_49.pdf