How Will AuKing Mining Fund Its Bold Cloncurry Acquisition?

Strategic Acquisition in Focus

AuKing Mining Limited has made significant strides this quarter, centering its efforts on the proposed full acquisition of Orion Resources Pty Ltd, which holds the Cloncurry Gold Project in Queensland. This acquisition, structured in two stages, will see AuKing accelerate its earn-in rights to acquire 50% of Orion for $5 million, followed by the purchase of the remaining 50% for $16.283 million through the issuance of shares. The deal is contingent on ASX confirmation that full re-compliance with listing rules is unnecessary and awaits shareholder approval.

The Cloncurry Project itself offers near-term development potential with the Lorena processing plant and extensive tenement holdings, including the Mt Freda/Golden Mile deposits. Orion’s plans to re-establish mining and processing operations, alongside a regional processing hub, position AuKing to expand its footprint in a historically rich gold region.

Funding and Financial Position

To support this acquisition and ongoing activities, AuKing secured a A$5 million loan facility from London-based RiverFort Global Capital Limited, drawing an initial $500,000. This venture debt facility is structured with a three-year term and includes options for RiverFort to convert debt to equity at a premium. Additionally, AuKing completed a two-tranche share placement raising $1.177 million, with options attached to incentivize investors.

Despite these capital injections, AuKing’s cash reserves remain critically low at $56,000 as of 30 September 2025. The company has announced plans for a substantial entitlement offer to existing shareholders to bolster its financial position further. This capital raising is crucial to fund exploration, development, and the Cloncurry acquisition completion.

Exploration Progress Across Multiple Fronts

Exploration activities during the quarter were subdued as focus shifted to the acquisition, but notable progress was made. The Koongie Park copper/zinc project in Western Australia, operated under a joint venture with Cobalt Blue Holdings Limited, saw a proposed major uplift in activities following a positive scoping study highlighting strong project economics.

In Canada, an airborne survey at the Myoff Creek niobium and rare earth elements project in British Columbia revealed potential extensions of carbonatite mineralisation, opening new exploration targets. Meanwhile, AuKing’s uranium projects in Tanzania remain on hold pending funding, with recent sales of non-core licences completed to streamline the portfolio.

Corporate and Governance Updates

AuKing’s board remains stable with experienced leadership, including Non-Executive Chairman Peter Tighe and Managing Director Paul Williams. Related party payments were disclosed, including director fees and interest on loans. The company also repaid a short-term loan from GAM Company Pty Ltd during the quarter, reducing its debt burden.

Shareholder support was demonstrated at an Extraordinary General Meeting in August 2025, where all resolutions passed with near-unanimous majorities, including approval for the share placement and options issuance.