AuKing Mining Ltd (ASX:AKN) made meaningful progress during and after the June 2025 quarter, strengthening its financial position, advancing key exploration assets and reshaping its board to align with long-term strategic objectives.
In July, the company secured a A$5 million loan facility from London-based RiverFort Global Capital, providing a critical funding stream for near-term operations. This arrangement followed the completion of a two-tranche share placement to raise A$1.177 million, pending shareholder approval at an upcoming extraordinary general meeting.
Further momentum was generated at the Cloncurry Gold Project in Queensland, with AuKing signing a non-binding A$8 million financing term sheet with United States-based Nebari Natural Resources Credit Fund II LP. In parallel, its Koongie Park copper-zinc joint venture partner, Cobalt Blue Holdings, delivered a positive scoping study in June, underlining robust economic returns and strong production potential for the project.
AuKing also restructured its A$657,000 short-term loan with GAM Company Pty Ltd, reducing the principal and amending the interest rate from 1% per week to 1% per month. Subject to shareholder approval, GAM is set to receive 15 million shares in exchange for the loan extension, further supporting the company’s capital position.
Governance evolved during the period, with Lincoln Ho appointed as a non-executive director on April 15, 2025. Ho brings more than eight years’ experience as a director of ASX-listed companies, with a background spanning exploration strategy, corporate transactions and international project oversight.
All resolutions put forward at the company’s Annual General Meeting were passed with near-unanimous shareholder support.
Cloncurry Gold Project acquisition
Progress continued on the Cloncurry Gold Project in Queensland. AuKing has the right to earn a 50% interest in Orion Resources Pty Ltd by contributing up to A$5 million by June 30, 2027.
Orion is acquiring and consolidating assets including the Lorena gold processing plant and surrounding mining leases covering 447 square kilometres.
Orion’s Cloncurry Project interests, including the Mt Freda/Golden Mill mining leases. [Note the nearby Wynberg and Wallace/Wallace South gold projects are not assets being acquired by Orion].
To support the acquisition, a non-binding term sheet was executed with Nebari Natural Resources Credit Fund for an A$8 million three-year senior secured facility. Proceeds will be directed to Orion’s asset acquisition.
Completion is subject to due diligence, valuation and final documentation.
Koongie Park copper-zinc joint venture
Joint venture partner Cobalt Blue Holdings Ltd delivered a positive Scoping Study on June 6, 2025, for the Koongie Park Project in Western Australia. Key study metrics include:
- 10.5-year project life, commencing with Onedin open-pit and followed by Sandiego underground mining;
- Projected annual output of 5,000 tonnes of copper and 15,000 tonnes of zinc sulphate from Onedin;
- Sandiego expected to deliver copper and zinc concentrates grading 25% and 51% respectively;
- Financial highlights from the study include a pre-tax NPV (8% discount) of A$172 million and an internal rate of return (IRR) of 28%.
Cobalt Blue currently holds a 51% interest and can earn up to 75% by meeting staged expenditure requirements through 2028.
Exploration assets in Canada and Tanzania
Limited activity occurred at AuKing’s Canadian and Tanzanian tenements during the quarter. At Myoff Creek (British Columbia), airborne radiometric and magnetic surveys are planned. At Grand Codroy (Newfoundland), soil and rock chip sampling will be undertaken subject to available funds.
In Tanzania, the focus remains on the Mkuju Uranium Project, where a drill program is approved and will proceed when funds permit. Two contiguous Mkuju licences were agreed to be sold to Gage Capital for A$300,000, and sale completion is expected shortly. The Manyoni licences are also under conditional sale to Moab Minerals Limited for A$175,000.
Capital raising and debt facility
On July 2, 2025, AKN announced a binding term sheet with RiverFort Global Capital for a A$5 million loan facility. This funding source will support the Cloncurry Gold Project acquisition and subsequent development.
In parallel, AuKing raised A$1.177 million through a two-tranche share placement priced at A$0.006 per share, with free-attaching options. Tranche 1, comprising 113.3 million shares, was issued under existing placement capacity. Tranche 2, including director participation, is subject to shareholder approval at an Extraordinary General Meeting scheduled for August 15, 2025.
Joint lead managers Peak Asset Management and Spark Plus will be remunerated through cash fees and issue of placement options, pending shareholder approval.
AuKing closed the June quarter with A$35,000 in cash reserves and A$1.407 million in loans drawn. Net operating outflows were A$499,000. Estimated funding coverage stood at 0.06 quarters. However, management remains confident in meeting business objectives through successful recent raisings and ongoing cost control.