AuKing Mining Ltd (ASX:AKN) has struck a binding agreement to acquire full ownership of the Cloncurry Gold Project in northwest Queensland through the purchase of Orion Resources Pty Ltd, calling the move a “transformative” step in its evolution into a gold and copper developer.
The agreement, subject to shareholder and ASX approval, will see AuKing issue $16.28 million in new shares to Orion shareholders, valuing the Cloncurry project at $33 million. The company will also accelerate its previously planned 50% Orion acquisition for $5 million in cash, paving the way for 100% ownership.
Managing director Paul Williams said the deal removes uncertainty around project funding and management.
“Moving to full ownership removes that complexity and allows us to treat Cloncurry as a wholly owned AuKing asset,” he said.
“This means we can focus entirely on development activities, supported by Orion’s existing experienced project team. The board views this acquisition as a substantial opportunity to transition AuKing into a gold and copper developer and near-term producer while generating significant value for shareholders.”
Location of Cloncurry Gold Project assets (Wynberg and Wallace are excluded).
Processing hub advantage
At the heart of the Cloncurry package is the 280,000 tonne-per-annum Lorena CIL and flotation plant, built in 2018 at a cost of more than $50 million. Independently valued at more than $30 million, the facility provides AuKing with a low-capital restart pathway and the potential to toll-treat third-party ore under a “hub and spoke” model.
Overhead of Lorena plant, tailings and waste rock stockpiles and open pit.
District-scale potential
The Cloncurry Gold Project covers 447 square kilometres across granted mining leases and exploration permits, anchored by the historic Mt Freda and Golden Mile deposits. Both host JORC-compliant resources and have delivered high-grade drilling results in recent years.
Overhead of Golden Mile Complex, Comstock pit to the left and Shamrock pit to the right.
Nearby prospects — including Mt Scheelite, Little Duke and Evening Star — highlight the potential for additional gold discoveries as well as iron oxide copper-gold (IOCG) mineralisation, a style of system for which the broader Cloncurry region is well known.
AuKing also maintains a 50:50 joint venture at the historic Tick Hill gold mine, where high-grade tailings are earmarked for treatment through Lorena, providing a potential early cashflow stream.
Next steps
The company will now:
- Seek confirmation from ASX that re-compliance is not required under Chapter 11 listing rules.
- Launch a renounceable rights issue to fund the transaction, with details to be announced shortly.
- Finalise an $8 million funding facility with Nebari for acquisition purposes.
- Convene a shareholder meeting, targeted for late October 2025, to approve the issue of shares.
- Commence drilling to upgrade resources and delineate high-grade zones at Mt Freda and Golden Mile.
AuKing said the near-term focus will be on advancing project planning and an initial drilling program, aimed at upgrading resources and demonstrating the viability of restarting operations.