AuKing Mining Ltd (ASX:AKN) has successfully raised $1.177 million in a strongly supported share placement and secured a new $5 million loan facility, reinforcing the company’s financial position as it looks to acquire the Cloncurry Gold Project in Queensland.
The over-subscribed placement saw commitments from professional and sophisticated investors, including AuKing’s directors, who have pledged to invest about $150,000. The funds will support the Cloncurry acquisition deal with Orion Resources Pty Ltd and advance the company’s operational goals.
Two-tranche placement with director support
AuKing issued 207.5 million new fully paid ordinary shares at A$0.006 each, with free-attaching options. The placement was divided into two tranches: $680,025 raised through the issuance of 113.3 million shares pursuant to AuKing’s existing placement capacity, and a second tranche of $564,975 pending shareholder approval.
The directors’ commitment is subject to an extraordinary general meeting (EGM) where shareholder approval will be sought for the second tranche and the issue of additional options. These options include one $0.006 option for each share issued, and one $0.03 option for every two shares issued, with a term extending to 2027.
RiverFort facility and debt restructuring
In addition to the placement, AuKing has entered into a binding term sheet with London-based RiverFort Global Capital for a new $5 million loan facility. The first drawdown of $500,000 will be subject to shareholder approval and may be converted into shares at a 150% premium to the placement price, further strengthening AuKing’s balance sheet.
The loan facility is expected to provide critical funding for the ongoing acquisition of the Cloncurry Gold Project from Orion, with further drawdowns available by mutual agreement. This facility also includes options for RiverFort to convert loan amounts into shares at a future premium.
AuKing has also agreed to restructure its short-term loan with GAM Company Pty Ltd, reducing the principal and interest rate. The revised terms provide for repayment by September 2025 and the issuance of 15 million shares, subject to shareholder approval at the upcoming EGM.
Path forward for Cloncurry and future development
Managing director Paul Williams said the placement and the new RiverFort facility provide a solid financial foundation for the company as it finalises the Cloncurry deal in the coming weeks.
“In addition, the RiverFort facility provides the company with an additional rouce of project-development funding as it seeks to re-establish gold production operations at Cloncurry,” he said.
The company is also working with Nebari Natural Resources Credit Fund II on a potential A$8 million financing facility to further progress the Cloncurry acquisition, with due diligence currently under way.