AuKing to Acquire Cloncurry Project with $16.28M Share Deal

A Transformative Acquisition in Queensland

AuKing Mining Limited (ASX – AKN) is on the cusp of a major strategic shift as it prepares to complete the acquisition of the Cloncurry Gold Project in north-west Queensland. The deal, structured through the full takeover of Orion Resources Pty Ltd, is scheduled to close in early November 2025. This acquisition promises to transition AuKing from an explorer to a near-term gold producer, leveraging a substantial asset base in a historically prolific mining district.

Orion Resources has secured short-term financing to meet its purchase obligations for the Cloncurry Project, enabling the transaction to proceed on schedule. This funding will be repaid through a proposed $8 million debt facility arranged by Nebari and an upcoming entitlement offer to AuKing shareholders, details of which are expected soon.

Strategic Asset and Processing Hub

At the heart of the acquisition is the Lorena processing plant, a modern facility permitted to process 280,000 tonnes per annum. Commissioned in 2018 at a capital cost exceeding $50 million, Lorena offers AuKing a rare low-capital pathway to restart operations. Its capacity to toll-treat third-party ore also opens potential new revenue streams, positioning AuKing as a regional processing hub in the Cloncurry district.

The project’s footprint covers approximately 447 square kilometres, including granted mining leases and exploration permits centered on key deposits such as Mt Freda and Golden Mile. Both sites have historical production records and JORC-compliant mineral resources, with recent drilling confirming extensions and high-grade mineralisation. Additional prospects like Mt Scheelite and Little Duke add significant exploration upside, hinting at the potential for new discoveries in a district known for copper-gold and IOCG-style mineralisation.

Funding and Approvals on the Horizon

The acquisition will be executed in two stages – an accelerated earn-in of 50% of Orion for $5 million cash, followed by the acquisition of the remaining 50% through the issue of new AuKing shares valued at $16.28 million. Half of these shares will be subject to voluntary trading restrictions to align shareholder interests with project milestones.

AuKing has proactively engaged with the ASX to confirm that full re-compliance with listing rules will not be required, though final approval remains conditional. Shareholder approval will also be sought before the share issuance to Orion’s existing shareholders is completed. Concurrently, AuKing plans a renounceable rights issue to raise additional capital, underscoring the company’s commitment to funding development and exploration activities.

Looking Ahead

With the acquisition closing, AuKing’s focus will shift to detailed project planning and development. The company aims to leverage existing infrastructure and historical data to accelerate the restart of gold production. The Cloncurry Gold Project’s combination of modern processing facilities, established resources, and district-scale exploration potential offers a compelling platform for growth in a strong gold market.

Managing Director Paul Williams emphasised the significance of this milestone, highlighting the opportunity to create substantial shareholder value through both near-term production and longer-term exploration success.