AuKing Mining (ASX:AKN) has entered a binding heads of agreement to acquire a whole shareholding in Orion Resources, comprising full ownership over the Cloncurry Gold Project in northwest Queensland.
The company will pay a total consideration of $16.28 million in shares to existing Orion shareholders to buy out its stake.
The agreement sees AuKing accelerating its earn-in right to obtain a 50% stake for $5 million, before advancing to a 100% stake through the share issuance.
Managing Director Paul Williams describes this change in plan as a recognition of investor uncertainty surrounding project management and funding.
“Moving to full ownership removes that complexity and allows us to treat Cloncurry as a wholly-owned Auking asset,” Williams says.
“This means we can focus entirely on development activities, supported by Orion’s existing experienced project team.”
The Cloncurry Project hosts the Lorena processing plant, which processes 280,000 tonnes per year, offering AuKing the opportunity to treat its own ore, as well as potential to run a third party mill feed.
AuKing Mining is a resource explorer focused on advancing to become a mid-tier copper, uranium, and other base and precious metals producer.
Write to Maddison Elliott at Mining.com.au
Images: AuKing Mining
