Auric Mining buys Union Jack project for $9.6M

• Auric Mining executed agreements to acquire the Union Jack Project for $9.6 million.
• The deal expands the company's total gold mineral resource inventory by 51% to 301,000 ounces.
• The acquisition aims to secure near-term open-pit feed for the nearby Burbanks processing plant.

Auric Mining (ASX:AWJ) executed binding agreements to acquire the Union Jack Project in Western Australia for initial consideration totalling $9.6 million in cash and shares.

The target asset holds an inferred mineral resource of 102,000 ounces of gold, which expands the company's total gold resource inventory by 51% to 301,000 ounces.

"The Union Jack Project dovetails perfectly with our strategy of acquiring near-term gold production assets within trucking distance of the Burbanks Mill," said Auric Mining Managing Director Mark English.

The acquisition structure involves $6.6 million in cash, $3 million in shares, and additional milestone payments contingent on resource growth up to 200,000 ounces.

The company stated that the project could serve as an open-pit feed source for its Burbanks facility, which it intends to re-establish as a processing hub by early 2028.

Following the announcement, the Auric Mining share price was unchanged at $0.24.

The Union Jack asset comprises granted mining and prospecting leases covering 89 hectares located approximately 15km from the Burbanks processing plant.