AuKing Mining Limited (ASX:AKN) Secures the Right to Acquire a 50% Stake in Cloncurry Gold Project
Shareholding Increase
AuKing Mining Limited (ASX:AKN) has secured the right to acquire a 50% stake in Orion Resources Pty Ltd, the proposed new owner of the Cloncurry Gold Project. This follows a previous agreement for a 15% shareholding after $1.5 million in project-related expenditures. Under the new agreement, AuKing will increase its interest to 50% by investing a total of $5 million in project funding by 30 June 2027.
Cloncurry Gold Project Acquisition
Orion Resources is advancing the acquisition of the Cloncurry Gold Project, with financial close expected in April. The project includes the Lorena processing plant and the Mt Freda/Golden Mile deposits, with plans to restart processing operations and potentially process materials from the Tick Hill mine.
Earn-in Agreement Terms
The earn-in agreement outlines that AuKing will focus on exploration, drilling, and resource estimation at the Mt Freda/Golden Mile areas, as well as supporting Orion’s development programme, including Tick Hill tailings re-processing and Lorena plant refurbishment. Upon completing the $5 million investment, a Joint Venture will establish, with AuKing holding a 50% interest. Failure to meet the investment will result in the lapse of AuKing’s interests.
Executive Comments
“Having already secured the right to acquire a 15% interest, AuKing now has the ability to acquire a more substantial 50% total interest in the Cloncurry Gold Project assets that are being acquired for development by Orion. When you consider that those assets comprise a central processing plant (Lorena), mining and exploration licences and (as recently announced) access to materials from other mining projects in the region such as Tick Hill, AuKing is well-positioned to play a key role in overseeing the re-establishment of mining and processing operations around Cloncurry in north Queensland,” said Mr Paul Williams, Managing Director, AuKing Mining Limited.
Motley Fool contributor Aaron Shaw 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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