BRISBANE: AuKing Mining Ltd. (ASX: AKN) announced Thursday it has entered into a binding agreement to acquire 100% of Orion Resources Pty Ltd, granting full ownership of the Cloncurry Gold Project in north-west Queensland.
The acquisition, valued at A$33 million, will be completed in two stages. AuKing will accelerate its initial 50% acquisition for A$5 million in cash, followed by the issuance of A$16.28 million in new shares to Orion shareholders for the remaining stake. The deal is subject to shareholder and regulatory approvals, including confirmation from the Australian Securities Exchange that re-compliance under Chapter 11 of the ASX Listing Rules is not required.
“This agreement gives AuKing a clear pathway to unlock the full value of the Cloncurry Gold Project in a strong gold market,” said Paul Williams, AuKing’s managing director. “Full ownership removes complexity and allows us to treat Cloncurry as a wholly-owned AuKing asset.”
The Cloncurry Gold Project spans approximately 447 square kilometers and includes the Mt Freda and Golden Mile complexes, both of which have demonstrated high-grade gold mineralization. The permitted 280,000-ton-per-annum Lorena processing plant, valued at over A$30 million, offers strategic hub-and-spoke operational potential for AuKing and third-party ore treatment.
AuKing also holds a 50:50 joint venture interest in the historic Tick Hill mine, which produced 665,000 ounces of gold at an average grade of 25 g/t Au. The company plans to toll-treat tailings from Tick Hill through the Lorena plant, with pilot testing and feasibility studies already confirming economic viability.
The company intends to raise capital through a renounceable rights issue to fund the acquisition and development activities. A shareholder meeting is scheduled for late October to finalize the transaction.
AuKing said it will immediately begin detailed project planning and initiate drilling programs to upgrade resources and delineate high-grade zones across the district.