AuKing Mining has agreed to acquire the Tundulu Rare Earths Project in Malawi, a large and under-explored carbonatite complex with strong historical drilling results. The acquisition is supported by a $3 million capital raise to fund exploration and drilling activities.
- Acquisition of 100% interest in Tundulu Rare Earths Project, Malawi
- Historical drilling indicates high-grade rare earth oxides (up to 3.7% TREO)
- Proximity to world-class Kangankunde and Songwe Hill deposits
- Planned $3 million strategic placement to fund exploration and drilling
- Performance shares contingent on JORC-compliant mineral resource milestone
AuKing Targets Strategic Rare Earths Expansion in Malawi
AuKing Mining Limited (ASX:AKN) is stepping up its critical minerals ambitions with the acquisition of the Tundulu Rare Earths Project in south-eastern Malawi. The project covers a 91.5 km2 carbonatite ring complex that ranks among the largest and least explored rare earth systems in the country. Historical drilling, including programs by the Japanese International Cooperation Agency (JICA) in 1987 and a Mota-Engil/Optichem joint venture in 2014–15, returned impressive intersections such as 41 metres at 3.7% total rare earth oxides (TREO) from 8 metres depth, and 35 metres at 2.7% TREO including 14 metres at 4.1% TREO.
The Tundulu Project is strategically located near Lindian Resources’ Kangankunde deposit (261 million tonnes at 2.61% TREO) and Mkango Minerals’ Songwe Hill project (21 million tonnes at 1.41% TREO), both among Africa’s most significant rare earth deposits. Mineralisation at Tundulu is notable for its enrichment in heavy and medium rare earth elements, with low levels of uranium and thorium, potentially easing environmental and processing challenges.
Capital Raising and Acquisition Terms
To fund the acquisition and initial exploration, AuKing has secured commitments for a $3 million placement priced at $0.015 per share. The capital will cover the upfront payment to the vendor, planned drilling and metallurgical testwork at Tundulu, and exploration at AuKing’s other projects in Tanzania and Tasmania. The placement is managed by GBA Capital Pty Ltd, which will receive a combination of options and a cash fee contingent on the raise.
The acquisition consideration includes $1 million cash on completion, $1.25 million in AuKing shares subject to escrow, and $1 million in performance shares convertible upon delivering a JORC-compliant mineral resource of at least 25 million tonnes at 1.25% TREO. Additional staged cash payments totaling $2.2 million are due within 12 months post-completion. Completion depends on regulatory approval for the licence transfer under Malawi’s Mining and Minerals Act 2023.
Exploration Plans and Historical Data Validation
AuKing plans to deploy modern exploration techniques including drone-based LIDAR and magnetics to map structural controls before commencing an initial drilling campaign. This program aims to extend known mineralisation around Nathace Hill and define resources at Tundulu Hill, where historical rock chip samples showed grades exceeding 6% TREO. Metallurgical testwork on drill core samples will assess the potential for separate rare earth and phosphate concentrates, building on limited prior studies that AuKing considers insufficiently representative.
The company acknowledges that historical exploration results were not reported to current JORC 2012 standards and will undertake its own validation. A Competent Person has reviewed the legacy data but cautions that confidence levels may change with new work. This approach aligns with AuKing’s broader strategy to diversify its portfolio across critical minerals, including copper-zinc-silver at Koongie Park, uranium in Tanzania, and tin-tungsten in Tasmania.
This acquisition follows AuKing’s recent capital management efforts, including a $2M share placement earlier this year, signalling a push to strengthen its exploration pipeline amid tightening funding conditions.
Geological Significance and Regional Potential
The Tundulu carbonatite complex features multiple mineralised hills arranged around a central vent, hosting bastnaesite and apatite mineralisation with strong rare earth signatures. The presence of high-grade zones open along multiple directions suggests significant upside potential. Given the proximity to advancing projects like Kangankunde, which recently raised $100 million and is moving toward production, Tundulu could become a valuable addition to the regional rare earths supply chain if exploration confirms the historical promise.
However, the timeline for licence transfer approval remains uncertain, and the success of metallurgical testwork will be critical to determining economic viability. AuKing’s planned drilling results and resource estimate within 12 months will be key milestones to watch.
Bottom Line?
AuKing’s acquisition of Tundulu positions it in a promising rare earth district, but validation of historical data and metallurgical viability will be critical next steps.
Questions in the middle?
- Will AuKing’s drilling confirm a JORC-compliant resource at Tundulu within 12 months?
- How will metallurgical testwork influence the potential for separate rare earth and phosphate products?
- What is the expected timeline for regulatory approval of the licence transfer in Malawi?