AuKing Mining Ltd has entered into a two-part strategic agreement with Gage Resources Pty Ltd, an Australian subsidiary of Beijing-based financial investment group Gage Capital Management Co., Ltd that includes a $300,000 investment.
The second part of the agreement involves Gage acquiring two AuKing non-core prospecting licences in Tanzania.
At the AuKing Extraordinary General Meeting held on December 23, 2024, Resolution 3 was approved by shareholders, enabling the company to issue up to a maximum 60 million shares to a strategic investor.
To hold 10% stake
Subsequently, Gage has agreed to subscribe for 60 million new shares in the company at an issue price of A$0.005, raising an additional $300,000 for AuKing’s working capital purposes.
The placement of these shares to Gage, a Chinese finance and investment group that is very experienced with investments in other ASX-listed resource companies, will represent approximately 10% of the company’s issued shares.
Accordingly, the board of AuKing welcomes Gage Capital as they take a strategic position in the company as it seeks to advance projects in Australia, Tanzania and Canada.
The subscription is based on standard terms for an agreement of this kind and does not confer any additional rights upon Gage, other than as a shareholder of the company.
To acquire two PLs
As well as the placement, Gage Capital, via its proposed subsidiary in Tanzania, will acquire two AuKing prospecting licences (PLs) in the Mkuju region of southern Tanzania for a total purchase price of A$300,000.
The sale is conditional on certain matters including:
- Establishment by Gage of a Tanzanian subsidiary;
- AuKing to provide access to all pertinent information within its control;
- Mining Commission approval for the transfers; and
- Registration of the PL transfers on the Mining Registry.
No impact on Mkuju Project
AuKing said the proposed sale of PLs to Gage had no impact on the company’s keen desire to begin drilling at its highly prospective Mkuju Uranium Project in southern Tanzania.
While the PLs being sold to Gage are contiguous to AuKing’s other interests at Mkuju, the company has no high-priority drilling targets within these PL areas.