AuKing Mining Ltd and project partner Orion Resources Pty Ltd are preparing the Cloncurry Gold Project in northern Queensland for renewed gold production with the signing of a non-binding indicative financing term sheet for US$25 million.
The indicative financing will allow for the potential reactivation of the Cloncurry Gold Project and could pave the way for near-term gold production in the region, subject to the successful completion of the funding process and other development steps.
AuKing managing director Paul Williams said: "Orion’s signing of the US$25 million non-binding indicative financing is a significant milestone for Orion as it seeks to complete the acquisition of the Cloncurry Gold Project assets and progress to early gold production.”
Long-established North American lender
Under the indicative agreement, Orion has secured terms for a senior secured credit facility with a long-established North American lender experienced in financing mining and energy developments.
The proposed facility is structured as a three-year loan at an interest rate of 13% per annum, with a 0.5% line fee applied to undrawn funds.
If finalised, the financing will support Orion's acquisition of Cloncurry Gold Project assets and provide funding for feasibility and development activities across key project sites.
These include the proposed Tick Hill joint venture, mining operations at Mt Freda and processing works at the existing Lorena plant.
The funding agreement remains subject to customary conditions, including due diligence, asset valuation and the execution of formal documentation.
The identity of the lender has not been disclosed at this stage, pending the completion of these requirements.
AuKing retains the right to acquire a 50% interest in Orion by contributing A$5 million in expenditure on the project before 30 June 2027, as previously announced on March 4.