AuKing Mining Ltd (ASX:AKN) has ticked off a major condition in its proposed A$8 million financing package with US-based Nebari Natural Resources Credit Fund II, moving the Cloncurry Gold Project in northwest Queensland another step closer to acquisition and development.
The company confirmed on Wednesday that Nebari has completed and cleared its legal and technical due diligence review — a crucial milestone that paves the way for the execution of binding loan documentation and financial close later this month.
Building on earlier agreement
Back in May, AuKing and joint venture partner Orion Resources Pty Ltd signed a non-binding indicative term sheet with Nebari for a senior secured credit facility. The facility is intended to fund the acquisition and early-stage development of the 447 square kilometre Cloncurry licence package in north-west Queensland.
The Nebari deal marked an important endorsement from a specialist US financier with a track record of resource sector lending. At the time, AuKing managing director Paul Williams described it as “transformative” in positioning the company to unlock Cloncurry’s gold potential.
Project upside and infrastructure advantage
The Cloncurry Gold Project covers a district-scale landholding centred on the historic Mt Freda and Golden Mile deposits, with additional unexplored targets across proven mineralised corridors.
JORC-compliant resources are already defined, but AuKing and Orion see significant upside from infill and extensional drilling, alongside new discovery opportunities identified through modern geophysics.
The project is also supported by nearby infrastructure, including sealed road access, grid power, and proximity to the Lorena gold/copper processing plant (15 kilometres away), offering a potential low-capex route to early gold production.
Eyeing swift pivot to development
Williams said Nebari’s decision validated the project’s quality and potential in a strong gold market.
“Together with our acquisition partner, Orion Resources, we will be working hard over the coming weeks to finalise the Cloncurry Gold acquisition,” he said.
“In addition, the proposed Nebari financing allows the AuKing project team to start focusing on future project development-related activities, so that we can move immediately after financial close occurs, which is now expected for late September 2025.”
Next steps
With the due diligence hurdle cleared, AuKing and Orion will:
- Finalise binding facility documentation with Nebari;
- Complete financial close and secure transfer of the project assets;
- Mobilise technical, engineering and field crews;
- Commence targeted drilling to upgrade and extend resources; and
- Advance metallurgical testwork and front-end engineering studies.
The financing package is expected to provide the springboard for AuKing’s transition from explorer to gold producer, positioning Cloncurry as the centrepiece of its growth strategy.