AuKing Mining earlier this week announced that it has signed a binding agreement to acquire 100.00% of Orion Resources, giving it full control of the Cloncurry Gold Project in Queensland. AuKing's Managing Director Paul Williams joined Proactive to explain.
Highlights
- AuKing Mining signed a binding agreement to acquire 100% of Orion Resources.
- The deal consolidates ownership of the Cloncurry Gold Project in Queensland.
- Assets include the Lorena processing plant, fully permitted mining leases with JORC resources, and prospective exploration ground.
- The board sees this as a step to transition the company into a gold developer and near-term producer.
- Funding will include $8.00 million from a New York-based group and an entitlement offer for shareholders.
- Proceeds will support both the acquisition and project activities such as drilling and feasibility studies.
- AuKing aims to start work immediately after closing the acquisition.
Details Of Acquisition
AuKing said the acquisition represents a significant step as it pivots into gold development. The Cloncurry package includes the Lorena processing plant, a series of mining leases with historic production and remaining JORC resources, and a large area of exploration ground near the township of Cloncurry in north-western Queensland.
Managing Director Paul Williams told investors that this is the first time the collection of assets has been brought under single ownership. He said: “This collection of assets has never been under the one roof before, and it presents AuKing with a great opportunity to become one of the next producers of gold in Queensland.” AuKing says the acquisition will provide a clear pathway to becoming a near-term gold producer. It said the board views the deal as an opportunity to create value for shareholders while laying the groundwork for future development.
Funding Package and Entitlement Offer
AuKing confirmed that it is working toward financial close of the transaction. The funding package will include about $8.00 million from a New York-based advisory group. In addition, the company will proceed with an entitlement offer to existing shareholders to allow them to participate in the upside.The company said funds from the raise will be directed partly to the purchase of the project and partly to exploration and development work. Planned activities include drilling programs, feasibility study work and other project development tasks, all of which are expected to begin immediately following the close of the acquisition.
Next Steps
Williams told Proactive that the company has been preparing for this throughout the year and is ready to move quickly once the deal is finalised. He said the focus will be on rapidly advancing work programs to position AuKing as a gold producer in Queensland.
The company said the coming weeks will be important as it completes the raise and progresses to financial close. Investors will be watching closely for updates on both the funding process and the start of project activities at Cloncurry.