AuKing Mining reports promising exploration results at Myoff Creek and steady progress at Koongie Park, while grappling with a failed Cloncurry acquisition and significant board changes.
- Myoff Creek airborne survey reveals potential carbonatite extensions
- Koongie Park JV with Cobalt Blue advances with positive scoping study
- Cloncurry Gold Project acquisition collapses amid financial and regulatory hurdles
- $400,000 capital raise completed; $1.5 million placement underway
- Three directors retire post-quarter; litigation initiated by Orion Resources
Exploration Highlights and Project Updates
AuKing Mining Limited’s December 2025 quarterly report paints a picture of mixed fortunes. The company’s airborne survey at the Myoff Creek project in British Columbia has confirmed near-surface carbonatite mineralisation and uncovered promising new targets, potentially extending known deposits of niobium and rare earth elements. This development adds fresh momentum to AuKing’s Canadian portfolio, which also includes uranium and copper prospects.
Meanwhile, in Western Australia, the Koongie Park copper and zinc project continues to progress under a joint venture with Cobalt Blue Holdings. The JV partner’s recent scoping study outlined robust financial metrics, including a post-tax net present value of A$121 million and an internal rate of return exceeding 21%, underscoring the project’s economic potential.
Acquisition Collapse and Legal Challenges
However, the quarter was overshadowed by the collapse of AuKing’s proposed 100% acquisition of the Cloncurry Gold Project from Orion Resources. The deal failed to complete due to Orion’s inability to meet financial conditions and the ASX’s determination that full regulatory approvals were required under Chapter 11 of its Listing Rules. In response, AuKing has withdrawn from the acquisition on those terms.
Complicating matters further, Orion Resources has initiated Supreme Court litigation in Western Australia seeking specific performance and damages related to the failed sale contract. The legal proceedings introduce an element of uncertainty that investors will be watching closely.
Corporate Movements and Capital Raising
On the corporate front, AuKing completed a $400,000 working capital raise in November 2025 with GBA Capital, alongside a placement of 80 million shares and free-attaching options. The company also announced a further $1.5 million capital raise in January 2026, aimed at bolstering funds for upcoming exploration activities, particularly in Tanzania and Canada.
Significant board changes followed the quarter’s end, with the resignations of directors Mark Fisher, Kylie Prendergast, and Nick Harding. These departures mark a notable shift in governance as AuKing navigates its next phase of development.
Financial Position and Outlook
AuKing reported cash reserves of just $113,000 at quarter’s end, highlighting the critical importance of the ongoing capital raising efforts. Exploration expenditure was modest at $59,000, reflecting a strategic pause as the company focused on the Cloncurry acquisition and corporate restructuring.
Looking ahead, AuKing’s ability to advance its promising exploration projects while managing legal and financial challenges will be pivotal. The company’s diverse portfolio across Australia, Canada, and Tanzania offers multiple avenues for growth, but execution risks remain elevated.
Bottom Line?
AuKing’s next moves on funding and legal fronts will be crucial in determining whether exploration promise can translate into shareholder value.
Questions in the middle?
- How will the Supreme Court litigation with Orion Resources impact AuKing’s financial and operational outlook?
- What are the prospects and timelines for the planned $1.5 million capital raise to support exploration?
- How will the recent board retirements affect strategic decision-making and project prioritisation?