This article is 2 years old. Images might not display.
The move to 100% control of the copper-zinc-cobalt and platinum group metals project in Western Australia's Halls Creek region stalled in August because of a lack of investor support, so the junior has stuck a deal with Tanzanian-born, Perth-based businessman Asimwe Kabunga for six projects in Tanzania.
Tanzania infamously wrong-footed its mining sector in 2016, but the most recent government has tidied up its mining code and is pushing for more investment in its resources sector, with a number of stalled projects again moving ahead.
Enter Kabunga, who is chair at Lindian Resources, Resource Mining Corporation and Volt Resources, and will soon become co-chair of AuKing alongside incumbent Anna Nahajski-Staples.
Kabunga comes bearing gifts: the Mkuju, Manyoni, Itigi and Magaga uranium projects, and the Mpanda and Karema copper projects.
All are at the application stage, and a deal won't be consummated until 12 priority prospecting licences are granted.
Subject to the usual due diligence and shareholder approvals, AuKing will pay A$6 million in the form of 60 million shares at 10c plus 30 million 20c options exercisable by September 2025.
AuKing is also seeking to raise about $3.5 million in fresh equity with clients of Vert Capital to fund its work.
New investors have already pumped in $1.37 million, and have committed another $2 million subject to shareholder approval.
The raisings are priced at 10c, a 17% premium to AuKing's 30 day trading average.
The new projects include Manyoni, which was previously explored by Uranex that is host to a 29 million pound at 144 parts per million historical resource, and Mkuju, which is adjacent to former ASX-listed Mantra Resources' 101.4Mlb at 422ppm Nyota resource.
The Mpanda copper project is about 10km from the historical Mukwamba copper mine that operated between 1930 and 1960. Karema reportedly contains a significant number of historical artisanal copper and base metals mines.
AuKing CEO Paul Williams said the junior was now a position to pursue and develop uranium assets in Africa given the recovery in yellowcake prices, while also working to deliver a maiden resource for the Emull discovery at Koongie Park and continue metallurgical tests for the existing Onedin deposit.
It moved to 80% of Koongie Park last month.
AuKing shares jumped 15% this morning to 11c, valuing it at $11.5 million
The stock has traded at 7-31c over the past year.
