AuKing Raises $5M, Acquires Tundulu Rare Earths and Tasmanian Tin Licences

Strategic Expansion into Rare Earths and Tin

AuKing Mining Limited (ASX:AKN) has accelerated its exploration ambitions by completing the acquisition of tin and silver exploration interests in north-western Tasmania and announcing the purchase of the Tundulu Rare Earths Project in Malawi. The Tasmanian licences, covering roughly 203km² near the Renison Bell tin mine, position AuKing in a historically productive mining district amid strong tin prices hovering around US$55,000 per tonne. Meanwhile, the Tundulu acquisition taps into one of Malawi’s largest under-explored carbonatite complexes, with historical drilling indicating high-grade rare earth mineralisation including heavy and medium rare earth elements with low uranium and thorium levels.

The Tundulu project’s strategic location near Lindian Resources’ Kangankunde and Mkango Resources’ Songwe Hill deposits situates AuKing within an emerging world-class rare earths district. Historical data shows 24 drill holes ending in mineralisation, eight exceeding 2% total rare earth oxides (TREO), suggesting significant upside through modern exploration methods. Post-quarter, AuKing completed an extensive drone-based magnetics and LiDAR survey over the entire 5km diameter carbonatite complex, a critical step ahead of planned drilling scheduled for May, pending regulatory approvals. This survey aligns with the company’s intent to refine drill targets and accelerate resource definition at Tundulu, as detailed in its recent drone survey completion.

Capital Raising to Fuel Growth

Supporting these expansions, AuKing executed two substantial equity placements. The first, completed during the quarter, raised $2 million through issuing shares at $0.0035 each in two tranches, with the second tranche subject to shareholder approval. Following the Tundulu announcement, the company secured binding commitments for a further $3 million placement at $0.015 per share, led by GBA Capital Pty Ltd. This $5 million capital influx is earmarked to fund exploration and drilling activities at Tundulu and the Tasmanian tin project. The $3 million placement also included 40 million options exercisable at $0.006, expiring in December 2026, granted to the lead manager as part of the fee structure.

Financially, AuKing reported a cash balance of $931,000 at quarter-end, with net operating cash outflows of $985,000. The company also repaid a $300,000 director loan facility in April 2026 and converted $500,000 of convertible notes into equity, reflecting active balance sheet management. Additionally, AuKing maintains a $5 million loan facility with RiverFort Global Capital Ltd, structured in tranches to support the Orion project development, indicating ongoing efforts to secure diverse funding sources. These financial manoeuvres follow a previous period of tighter cash flow, as reported in January 2026, when the company planned capital raises to underpin its exploration programs capital raise plans.

Portfolio Rationalisation and Corporate Changes

AuKing also moved to streamline its portfolio by finalising the sale of non-core Manyoni uranium licences in Tanzania to Moab Minerals Limited, with consideration involving Moab shares subject to approval. The company is in discussions to dispose of Canadian claims at Myoff Creek and surrendered the Grand Codroy claim, reflecting a focus on core projects.

Corporate governance saw notable changes with the resignation of three directors in January 2026 and the appointment of senior geologist Ian McBride, bringing international exploration expertise to the team. The company also transitioned its share registry services to Automic Pty Ltd and implemented an Employee Awards Plan to incentivise and retain key personnel, aligning staff interests with shareholder value creation.

Exploration Outlook and Upcoming Catalysts

Exploration activity during the March quarter was limited, with expenditure of $55,000 and no mine production reported. However, the strategic acquisitions and capital raises set the stage for a busy exploration period ahead. The imminent regulatory approval for the Tundulu licence transfer in Malawi, expected in early May 2026, is a critical milestone for the project’s formal integration into AuKing’s portfolio. Subsequent drilling campaigns at Tundulu and the rollout of detailed exploration programs in Tasmania will be key value drivers to watch. The performance shares issued as part of the Tundulu acquisition hinge on achieving a JORC-compliant mineral resource of at least 25 million tonnes at 1.25% TREO, a milestone that will materially impact the company’s capital structure and valuation.