AuKing Mining (ASX:AKN) has revised a previous earn-in agreement, to acquire up to 50% of privately held Orion Resources, which is the proposed new owner of the Cloncurry Gold Project in northern Queensland.
Initially, AuKing agreed to acquire a 15% stake in Orion after incurring $1.5 million expenditure on project-related activities at the Cloncurry Project.
Under the revised agreement, AuKing will incur $5 million in expenditure on or before 30 June 2027 to acquire a 50% shareholding.
The exploration work includes drilling and resource estimation work associated with the Mt Freda and Golden Mile project areas, as well as addressing other aspects of Orion’s development program including Tick Hill tailings reprocessing and Lorena plant refurbishment.
Managing Director Paul Williams says the revised agreement presents an opportunity for the company to secure a significant holding in the project and take advantage of the investment market sentiment towards the gold sector.
“Having already secured the right to acquire a 15% interest, AuKing now has the ability to acquire a more substantial 50% total interest in the Cloncurry Gold Project assets that are being acquired for development by Orion,” Williams says.
“When you consider that those assets comprise a central processing plant, mining and exploration licences and access to materials from other mining projects in the region such as Tick Hill, AuKing is well-positioned to play a key role in overseeing the re-establishment of mining and processing operations around Cloncurry in north Queensland.”
Additionally, Orion entered into an asset sale agreement to acquire the existing Lorena processing plant and associated facilities, which sit 15km east of Cloncurry.
Orion is proposing to establish a central gold and copper processing hub for the region.
AuKing Mining is a mineral explorer and developer focused on a range of metals in Western Australia and Tanzania.
Write to Aaliyah Rogan at Mining.com.au
Images: AuKing Mining
