AuKing Mining (ASX:AKN) has entered into a two-part strategic agreement with Beijing-based financial investment group Gage Capital Management Co.
The agreement involves the placement of 60 million new AuKing shares and the acquisition of two non-core prospecting licences in Tanzania.
AuKing notes that the proposed sale of prospecting licences to Gage Capital will not effect on AuKing’s desire to start drilling at its Mkuju uranium project situated in southern Tanzania.
While the licences being sold are contiguous to its other interests at Mkuju, Auking has no high-priority drilling targets within these areas, the company adds.
Under the agreement, an Australian subsidiary of Gage Capital has agreed to subscribe for 60 million new shares at an issue price of $0.005, raising $300,000.
The placement will represent a 10% of the company’s issued shares.
Write to Adam Orlando at Mining.com.au
Images: AuKing
