AuKing Mining Ltd and Orion Resources Pty Ltd have signed a non-binding term sheet for a proposed A$8 million loan to support the Cloncurry Gold Project in northern Queensland. If approved, the funding will come from US-based resource sector lender Nebari Natural Resources Credit Fund II, LP.
Under the agreement, Nebari plans to provide a three-year secured loan to AuKing and Orion. It will also have the first right to offer any future project funding during this period.
“The signing of the A$8 million non-binding indicative financing represents a significant step forward for AuKing and Orion as they progress the Cloncurry Gold Project into near-term gold production,” AuKing’s managing director, Paul Williams, said.
“Most importantly, the proposed Nebari financing allows the respective Orion and AuKing project teams to start focusing on project development-related activities, so that we can move immediately after financial close of Orion’s purchase of the Cloncurry assets, which is now expected for July 2025. ”
Near-term gold production
The money is earmarked for Orion’s acquisition of the Cloncurry Gold Project assets, marking a key milestone in the progression of the partnership’s investment strategy in the region.
The potential Nebari funding comes just a month after AuKing and Orion signed a non-binding indicative financing term sheet for US$25 million to 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.
Orion’s progress towards restarting production at Cloncurry marks a key milestone for AuKing, which holds the right to earn a 50% interest in Orion through a A$5 million expenditure commitment by June 30, 2027.
As Orion advances towards operational status, AuKing is positioned to benefit from early-stage cash flow and potential resource growth, enhancing its strategic foothold in the gold sector.
Orion has signed an asset sale agreement to acquire the Lorena gold processing plant and associated infrastructure, located about 15 kilometres east of Cloncurry in northern Queensland. The facility includes a conventional carbon-in-leach circuit.
The agreement also covers exploration and mining tenements surrounding the Lorena site, as well as the Mt Freda/Golden Mile Project about 30 kilometres to the south. In total, the acquisition spans 447 square kilometres across the Cloncurry region and is expected to reach financial close in April 2025.