AuKing Mining Ltd (ASX:AKN) earlier this week announced that US-based Nebari Natural Resources Credit Fund II has completed its legal and technical due diligence review on the company’s proposed A$8.00 million financing package. Managing director Paul Williams sat down with Proactive to discuss.
Highlights
- AuKing Mining has cleared a key condition in its proposed A$8 million Nebari financing package.
- Due diligence is complete, paving the way for binding loan documentation and financial close later this month.
- The funds will support the acquisition and early-stage development of the Cloncurry Gold Project in northwest Queensland.
- The project already hosts JORC-compliant resources, with upside from further drilling and geophysical targets.
- Nearby infrastructure, including sealed roads, grid power, and a processing plant, offers a low-capex development advantage.
- Managing director Paul Williams said the financing allows the company to pivot immediately to development activities once close occurs.
- Next steps include finalising agreements, mobilising crews, and commencing drilling and metallurgical studies.
Major milestone achieved
Completion of Nebari's due diligence represents a major milestone for its planned acquisition and development of the Cloncurry Gold Project in northwest Queensland. Binding loan documentation and financial close are now expected later in September 2025.
AuKing told investors that the financing facility, agreed with Nebari in May, will provide the funds required to complete the Cloncurry acquisition alongside its joint venture partner Orion Resources. The facility is designed to cover acquisition costs and early-stage development activities across the 447 square kilometre licence package.
The Cloncurry Gold Project includes the Mt Freda and Golden Mile deposits and is already supported by JORC-compliant resources. AuKing said there is further potential through infill and extensional drilling as well as new exploration targets identified through geophysical surveys.
Key advantages
The company highlighted that infrastructure advantages are a key feature of the project. The licence area benefits from sealed road access, grid power and close proximity to the Lorena gold and copper processing plant, located only 15 kilometres away. According to the company, this creates a potential low-capex pathway to early gold production.
Williams described the Nebari financing as “transformative” for the business, stating that it allows AuKing to begin focusing on development planning ahead of the project’s acquisition. “Together with our acquisition partner, Orion Resources, we will be working hard over the coming weeks to finalise the Cloncurry Gold acquisition,” Williams 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.”
With due diligence now cleared, AuKing outlined the next steps as finalising facility documentation, completing financial close, securing the transfer of assets, and mobilising technical, engineering and field crews. The company added that drilling programs will begin shortly after close, aimed at upgrading and extending existing resources, alongside metallurgical testwork and front-end engineering studies.
The company said the financing package is expected to provide the springboard for its transition from explorer to producer, with Cloncurry positioned as the centrepiece of its future growth strategy.