How Will AuKing’s $1.177M Placement and $5M Loan Fuel Cloncurry Gold Project?

Funding Boost for Cloncurry Acquisition

AuKing Mining Limited (ASX – AKN) has successfully secured $1.177 million through a strongly supported share placement, alongside a binding term sheet for a $5 million convertible loan facility with London-based RiverFort Global Capital. These capital injections are aimed at advancing the company’s acquisition and development of the Cloncurry Gold Project in Queensland.

The placement, priced at the company’s last traded price of $0.006 per share, is structured in two tranches. The first tranche of approximately $680,000 will be issued under existing placement capacity, while the second tranche of nearly $497,000 awaits shareholder approval. Notably, AuKing’s directors have committed to participate in the placement to the tune of $150,000, signaling confidence in the company’s growth trajectory.

Convertible Loan Facility Details

The $5 million loan facility with RiverFort offers AuKing flexible funding over three years, with an initial drawdown of $500,000 subject to shareholder approval. The loan carries a fixed 10% interest rate and includes conversion rights allowing RiverFort to convert outstanding principal and interest into shares at a 50% premium to the reference price. This arrangement provides AuKing with a valuable source of project development capital while balancing potential dilution risks.

Additionally, RiverFort has committed $100,000 towards the placement, further aligning their interests with AuKing’s success. The loan facility’s security is subordinated if the larger $8 million financing from Nebari Natural Resources Credit Fund II proceeds, reflecting a layered financing strategy for the Cloncurry project.

Debt Restructuring and Ongoing Financing Efforts

In parallel, AuKing has restructured its short-term loan with GAM Company Pty Ltd, reducing the principal and interest rate from 1% per week to 1% per month, with repayment extended to September 2025. As part of this agreement, GAM will receive 15 million shares, subject to shareholder approval, in exchange for granting the extension.

Meanwhile, due diligence continues with Nebari Natural Resources Credit Fund II for an $8 million financing facility intended to support the Cloncurry acquisition. This layered approach to funding underscores AuKing’s commitment to securing the necessary capital to re-establish gold production operations at Cloncurry.

Looking Ahead

AuKing’s Managing Director, Paul Williams, emphasized that the combination of the placement and RiverFort loan facility provides strong backing as the company moves toward completing the Cloncurry acquisition with Orion Resources. The upcoming extraordinary general meeting will be pivotal in securing shareholder approval for the second tranche of the placement and associated options, setting the stage for the next phase of project development.