AuKing Mining Ltd (ASX:AKN) has completed the first stage of its acquisition of Bonito Minerals, which holds an option to purchase the “La Dura” gold/silver project in Durango State, Mexico.
The company’s shares were last trading 25% higher intra-day, at $0.01.
AuKing is required to complete a two-stage process to acquire the initial 30% shareholding in Bonito as follows:
- Payment of $350,000 and the issue of $125,000 in AuKing shares to acquire an initial 14.2% shareholding in Bonito – this has now been completed; and
- payment of $400,000 and the issue of $125,000 in AuKing shares by 31 October 2017 to acquire a further 15.8% shareholding in Bonito.
AuKing also has a further two-staged option to purchase a further 20% of Bonito shares upon payment of a total $1.5 million on or before 31 October 2018.
As part of this initial completion, AuKing’s managing director, Paul Williams, has been appointed to the Bonito board.
Bonito holds an option to purchase the “La Dura” project area across five mining concessions located in Durango State.
La Dura sits in the highly mineralised Sierra Madre Occidental – a region that has seen circa 40 million ounces of gold and 1.2 billion ounces of silver and other base metals produced over the past 400 years.
The companies are now seeking necessary regulatory approvals to carry out on-site activities in preparation for an estimated 1600-metre exploration drilling program at La Dura.
The initial planning is for this program to commence in early August 2017.