AuKing Mining Ltd (ASX:AKN) managing director Paul Williams talked with Proactive earlier this week after the company bolstered its balance sheet through a successful A$1.177 million capital raise and a new US$5 million loan facility, supporting the planned acquisition of the Cloncurry Gold Project from Orion Resources Pty Ltd.
Highlights
- A$1.177 million raised via over-subscribed placement
- $5 million loan facility secured from RiverFort Global Capital
- Funding supports Cloncurry Gold Project acquisition in Queensland
- Directors commit ~A$150,000; second tranche subject to EGM approval
- Debt restructure agreed with GAM Company Pty Ltd
- Potential additional A$8 million facility under due diligence with Nebari
Strongly supported Placement
The two-tranche placement saw strong support from professional and sophisticated investors, including company directors who pledged around A$150,000.
Tranche one raised A$680,025 under existing placement capacity, while tranche two, worth A$564,975, is subject to shareholder approval at an upcoming extraordinary general meeting (EGM).
Loan facility
Complementing the placement, AuKing entered a binding term sheet with RiverFort Global Capital for a $5 million loan facility, with the initial $500,000 drawdown convertible at a 150% premium to placement price, subject to EGM approval.
The company is also restructuring its loan with GAM Company Pty Ltd and progressing due diligence with Nebari Natural Resources Credit Fund II for a potential A$8 million facility to further advance Cloncurry development.