Key Highlights

  • Australia United Mining disclosed a dispute with joint venture partner Forsayth Resources over their 2020 cooperation agreement in July 2026.
  • The company reported cash of about A$20,000 at 30 June 2026, with all A$700,000 of its Loan facilities drawn.
  • About 500 tonnes of ore were mined from the upper open cut at Forsayth after access roads were repaired.

Australia United Mining (ASX:AYM) is a small gold and base-metals explorer and part-time miner whose operations, a contractual dispute and its funding are closely linked. In late July 2026 the company disclosed a dispute with its Queensland joint venture partner, Forsayth Resources Pty Ltd, over their 2020 cooperation agreement. In the same month it reported cash of about A$20,000 and a borrowing Facility that was fully drawn.

What the company does

The company, formerly Altius Mining, explores for gold, copper, silver and nickel in New South Wales and Queensland. Its main interests are the Sofala project near Bathurst, where it holds 49 per cent and MinRex Resources (ASX:MRR) is the operator, and the Forsayth project in Queensland. The company has not reported recent exploration updates from MinRex.

Forsayth operations

According to the June 2026 quarterly report, released on 28 July 2026, mining resumed at Forsayth after repairs to rain-damaged access roads. About 500 tonnes of ore were mined from the upper open cut, of which about 200 tonnes had been crushed and stockpiled, and about 800 tonnes of spent ore from leach vats was moved. Forsayth Resources is discussing processing Options with a third party. The company has not reported any sales, Revenue or recognised income from this ore.

The cooperation agreement dispute

The company lodged an ASX filing titled "Cooperation Agreement Dispute" on 27 July 2026. As reported, Australia United Mining issued a notice to terminate the 2020 agreement, claiming Forsayth had failed to perform certain obligations. Forsayth disputed the notice and started proceedings, and a Queensland court granted Forsayth an interlocutory injunction preventing termination until trial. No trial date has been disclosed.

Cash, borrowing and related parties

The 28 July report shows cash of about A$20,000 at 30 June 2026, down from A$24,000 at the end of March. Net operating outflow was A$119,000 for the quarter and A$430,000 over the 12 months. The company drew A$115,000 of new borrowings in the quarter and A$411,000 over the year, and all A$700,000 of its loan facilities are now drawn. The lender is W.Y. International (Australia) Pty Ltd, a company controlled by directors Xiaojing Wang and Jia Yu, charging 12 per cent interest. The report states that W.Y. International has committed to continuing financial support.

The company's own calculation puts available funding at about 0.18 quarters. It says it could sell shares it holds in a listed company, valued at about A$406,000 at 30 June 2026 compared with about A$493,000 at 31 March. Shares on issue totalled 1,842,577,485. The loan descriptions contain inconsistent dates, leaving repayment terms unclear, and reliance on a related-party lender is a funding risk in its own right.

What to Watch

The main risks are the very small cash balance, dependence on related-party loans, the outcome of the Forsayth dispute, limited visibility over work at Sofala and the small volumes of ore mined. The Annual Report for the year to 30 June 2026, any developments in the Queensland court proceedings and any agreement on processing the Forsayth ore are the next items to follow.