AuKing Mining Limited (ASX:AKN) Grants Option to Resource Mining Corporation
Joint Venture Agreement
AuKing Mining Limited (ASX: AKN) has entered into a binding term sheet with Resource Mining Corporation Limited (ASX: RMI). This agreement grants RMI the option to purchase all of AuKing’s interests in its Joint Venture arrangements established in Saudi Arabia.
Strategic Decisions
AuKing’s Managing Director, Mr Paul Williams, explained that the company’s Board decided to shift resources towards the Cloncurry Project, resulting in the option deal with RMI. The option allows RMI to assume AuKing’s position in the Saudi Joint Venture with Barg Alsaman Mining Co (BSMC).
Saudi Joint Venture Details
Following the establishment of the Saudi JV with BSMC, AuKing has the right to earn a 70% interest by incurring project-related expenditure up to the feasibility study stage. Currently, the Saudi JV has project interests in Wadi Salamah and Shaib Marqan. An exploration licence for Wadi Salamah has been granted, while steps are underway to secure the Shaib Marqan licence.
Terms of the RMI Option
The RMI Option grants RMI thirty days to acquire AuKing’s rights and interests in the Saudi JV after the Shaib Marqan licence is granted. RMI will assume all obligations under the Saudi JV and will assist BSMC with the exploration licensing at its own expense. If the option is not exercised, AuKing’s interest will revert to BSMC without consideration. AuKing will provide updates as the situation progresses.
Motley Fool contributor Lauren Surplice has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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