AuKing and Orion Secure $8M Credit Facility for Cloncurry Acquisition
AuKing Mining and Orion Resources have signed a non-binding $8 million financing term sheet with US lender Nebari to advance the Cloncurry Gold Project acquisition and development.
- Non-binding $8M senior secured credit facility agreed with Nebari
- Funds earmarked for Orion’s acquisition of Cloncurry Gold Project assets
- Nebari retains right of first refusal for future project financing
- Due diligence and formal documentation pending before finalisation
- Acquisition completion targeted for July 2025
Strategic Financing Milestone
AuKing Mining Limited (ASX: AKN) and Orion Resources have taken a significant step towards advancing the Cloncurry Gold Project in northern Queensland by signing a non-binding indicative term sheet for an $8 million senior secured credit facility with Nebari Natural Resources Credit Fund II, a US-based lender with a track record in mining finance. This agreement, while subject to due diligence and formal documentation, signals strong external confidence in the project’s potential and provides a crucial funding pathway for Orion’s acquisition of the project assets.
Funding Focused on Acquisition and Development
The funds from Nebari are intended to support Orion’s purchase of the Cloncurry Gold Project, a key asset in AuKing’s portfolio. With the financing in place, the project teams from both AuKing and Orion can shift their focus towards development activities, aiming to accelerate progress towards near-term gold production. Managing Director Paul Williams highlighted that the financing arrangement enables immediate project development efforts post-acquisition, which is now expected to close in July 2025.
Conditions and Next Steps
The term sheet is non-binding and contingent on several conditions, including satisfactory due diligence on the Cloncurry assets, asset valuation, and the execution of formal facility documentation. Nebari’s involvement also includes a right of first refusal to provide additional financing during the facility’s three-year term, potentially offering further capital support as the project advances. This new term sheet supersedes a previous non-binding agreement announced in April 2025, reflecting refined terms and a clearer path forward.
Implications for AuKing and Orion
This financing arrangement marks a pivotal moment for AuKing and Orion, underpinning the strategic acquisition and development of a promising gold project in a well-established mining region. The involvement of a reputable North American lender like Nebari not only brings capital but also credibility, which could be instrumental in attracting further investment or partnerships. The timeline to acquisition completion and subsequent development activities will be closely watched by investors eager to see tangible progress on the ground.
Bottom Line?
With financing in place, AuKing and Orion are poised to accelerate Cloncurry’s development, but final approvals remain key.
Questions in the middle?
- Will Nebari’s right of first refusal lead to additional funding rounds?
- How will due diligence outcomes impact the final financing terms?
- What are the projected timelines for gold production post-acquisition?
