Cloncurry Gold Project Financing Milestone Eases Path but Risks Remain
AuKing Mining has achieved a critical due diligence milestone with Nebari, paving the way for an A$8 million credit facility to accelerate development of its Cloncurry Gold Project in Queensland.
- Nebari completes due diligence, advancing A$8M senior secured credit facility
- Cloncurry Gold Project spans 447 km² with strong exploration upside
- Strategic partnership with Orion Resources and proximity to Lorena processing plant
- Financial close expected late September 2025 to enable rapid project development
- Planned drilling and metallurgical work to fast-track near-term gold production
Milestone Achievement Accelerates Financing
AuKing Mining Limited (ASX – AKN) has announced a significant step forward in securing funding for its Cloncurry Gold Project, with Nebari Natural Resources Credit Fund II, LP completing its technical and legal due diligence. This milestone clears a major hurdle in the proposed A$8 million senior secured credit facility, bringing the project closer to financial close, anticipated by late September 2025.
Project Potential in a Historic Mining Hub
The Cloncurry Gold Project covers an extensive 447 square kilometre licence area in north-west Queensland, centred on historically productive deposits such as Mt Freda and Golden Mile. The project benefits from existing infrastructure, including sealed road access, grid power, and proximity to the Lorena gold/copper processing plant, which has a capacity of 250,000 to 300,000 tonnes per annum. This infrastructure advantage positions AuKing to pursue a low-capital, early cashflow development strategy.
Strategic Partnerships and Development Plans
AuKing’s collaboration with Orion Resources Pty Ltd strengthens its operational capabilities, while Nebari’s financing underpins the acquisition and development phases. Following financial close, AuKing plans to mobilise technical and engineering teams to commence infill and extensional drilling, metallurgical testing, and front-end engineering design. These activities aim to upgrade resource estimates, delineate high-grade zones, and optimise plant throughput, setting the stage for near-term gold production.
Outlook and Market Context
Managing Director Paul Williams highlighted that Nebari’s due diligence satisfaction not only validates the project’s value but also aligns with a robust gold market environment. The financing milestone enables AuKing to transition swiftly from acquisition to production, leveraging the Cloncurry region’s established mining infrastructure and resource potential. Investors will be watching closely as the company advances towards financial close and initiates its exploration and development programs.
Bottom Line?
With Nebari’s milestone cleared, AuKing is poised to transform Cloncurry’s gold potential into tangible production and value.
Questions in the middle?
- When will the formal financial close and drawdown of the A$8 million facility occur?
- What initial results can be expected from the upcoming drilling and metallurgical programs?
- How will AuKing manage operational risks to maintain the accelerated development timeline?
