AuKing Mining Ltd (ASX:AKN) earlier this week confirmed it is nearing the finalisation of its acquisition of the Cloncurry Gold Project in northwest Queensland.
The company told investors that financial close is now scheduled for November 3, 2025, after securing full funding for the transaction. The acquisition involves AuKing taking 100% ownership of Orion Resources, which in turn will acquire the Cloncurry gold assets.
Paul Williams, managing director of AuKing Mining, said there is now “certainty around the acquisition and around the financial close”. He added that a financing agreement has been executed by Orion Resources, facilitating the path to completion.
The Cloncurry Gold Project includes the Lorena gold processing plant as well as multiple mining leases where previous operations have occurred. AuKing said it plans to recommence activity in these areas and will release an updated mineral resource estimate within the coming weeks.
The company highlighted further exploration upside across the wider tenement package. It also sees strategic value in using the Lorena plant as a regional toll treatment facility, enabling third-party ore to be processed on a commercial basis, subject to AuKing's internal project priorities.
Williams noted that this acquisition marks a significant shift for the company. “It’s not just all about the gold price,” he said. “It’s a quality collection of assets.” The company believes that Cloncurry, located roughly 90 minutes from Mount Isa, is well-positioned in a historically productive mining region.
As part of the next steps, AuKing is preparing for a shareholder meeting and a capital raising to support the transaction. The company described the deal as “transformative”, positioning it as a gold developer with near-term production potential.
Proactive: AuKing Mining is now fully acquiring the Cloncurry Gold Project in northwest Queensland. And joining me now to give us the full rundown is the company's managing director, Paul Williams. Paul, it's good to see you again. How are you?
Paul Williams: Very good, Fouad. Thanks for the opportunity. Good to see you again.
Proactive: It’s great to see you, Paul, especially at a time when major stories like this are unfolding to the market. This is at a time when you're more and more certain of the potential that Cloncurry holds, hence this decision. Walk us through it.
Paul Williams: Yeah, so look — here we are, nearly US$4,400 an ounce for gold. It’s a great opportunity, as we've been saying for several months. But the key part of the announcement today is that there is now certainty around the acquisition and around the financial close of that acquisition.
So, as we've indicated previously, Orion Resources is our partner with this acquisition. They will be acquiring the assets, and then contemporaneously, we will be acquiring 100% of the shares of Orion.
That acquisition is now funded. There’s a financing agreement that's been put in place by Orion, which we've announced today, and that enables financial close to take place on the 3rd of November. Then over the few weeks after that, we will wrap up the Orion acquisition.
There'll be a shareholder meeting and another capital raising for existing shareholders. So, yeah, there's a lot to do, but the important message is — in this fantastic time to be getting gold projects up and running and acquired — that's what we're doing in the next couple of weeks.
Proactive: The board at AuKing is viewing this acquisition as a substantial opportunity to transition the company into a gold developer and near-term producer. Can you walk investors through how that will be done?
Paul Williams: Yeah, there's so much to say about that, Fouad. Primarily, there’s a gold processing plant called Lorena — that’s part of the assets being acquired. There's also a range of mining leases with historical mining operations where we plan to go back in.
We’ve got an updated mineral resource estimate coming out in the next week or so, based on those historical workings. There's also significant exploration upside in the tenement package being acquired.
Also, critically, we’re looking to stand up the Lorena plant as a regional facility — subject to our own project priorities, of course — but with the opportunity for other projects in the area to process gold through the Lorena plant under a toll processing arrangement.
So that’s the range of opportunities. It's not just all about the gold price — it's a quality collection of assets. Cloncurry is about an hour and a half drive from Mount Isa, in a historic mining district. The region is screaming out for that project to get up and going again. We can’t wait to get started.
Proactive: There's certainly lots to keep you busy behind the scenes as Cloncurry continues to unfold into a near-term gold producer. Lots to discuss with you in the coming weeks. It's been great having you. This was AuKing Mining’s managing director, Paul Williams.
Paul Williams: Thanks, Fouad. Good to see you.