AuKing Mining Ltd (ASX:AKN) has raised a further $2,126,000 at a $0.10 issue price - a premium of 69% to its closing share price on March 14, 2023.
The money comes via the completion of its second tranche (T2 placement) capital raising, following last year’s $7.1 million placement.
AKN will also issue 21,260,000 shares and 10,630,000 free-attaching options exercisable at $0.20 on or before September 30, 2025, to private sophisticated investors.
Hit the ground running
The $2.1 million will be used to hit the ground running at the recently acquired Manyoni Uranium Project in central Tanzania, with the advanced project already on a path to near-term production.
The company plans to conduct 2,000 metres of near-surface drilling to upgrade the historical JORC 2004 mineral resource estimate (MRE) of 92 million tonnes at a 100ppm cut-off containing 29 million pounds of U3O8 to JORC 2012 standard.
“This funding allows AuKing to proceed immediately with its proposed drilling and related activities at the Manyoni and Mkuju uranium projects in Tanzania,” AuKing CEO Paul Williams said.
“AuKing is also on target to present the findings in the coming weeks of its scoping study for the proposed mining operations based around the Sandiego deposit at the company’s Koongie Park project in north-eastern Western Australia.”
The Mayoni project hasn’t been without controversy, with the Tanzanian Mining Commission impacting two Manyoni Prospecting Licences (PLs).
However, AuKing now has sufficient resources to pursue its appeal filed with the Minister of Minerals in Tanzania in relation to the two revoked PLs and will work constructively to resolve the issue.
Despite this setback, it is full steam ahead at Manyoni as the company continues its exploration and drilling program.
Williams said the completion of the raise highlighted investor confidence in AuKing’s proposed drilling and other exploration activities in Tanzania.