How Will AuKing’s $33M Cloncurry Buy Transform Its Gold Future?

Transformative Acquisition Unlocks Full Project Control

AuKing Mining Limited has taken a decisive step to consolidate its position in Queensland’s Cloncurry district by entering into a binding heads of agreement to acquire 100% of Orion Resources. This acquisition grants AuKing full ownership of the Cloncurry Gold Project, a significant asset with a history of high-grade gold production and promising exploration potential.

The deal values the project at approximately $33 million on a 100% basis, with AuKing proposing to issue $16.28 million worth of new shares to Orion’s existing shareholders, subject to regulatory and shareholder approvals. This move follows AuKing’s initial 50% acquisition phase, which will now be accelerated as part of the full takeover strategy.

Strategic Processing Hub and District-Scale Potential

At the heart of the Cloncurry Gold Project is the Lorena processing plant, a modern facility permitted to process 280,000 tonnes per annum. Commissioned in 2018 and valued recently at over $30 million, Lorena offers AuKing a rare low-capital-cost pathway to restart operations. Beyond processing its own ore, AuKing plans to leverage Lorena as a toll-treating hub for third-party feed, adopting a “hub and spoke” model that could generate additional revenue streams and regional influence.

The project covers approximately 447 square kilometres, encompassing multiple granted mining leases and exploration permits. Key assets include the Mt Freda and Golden Mile complexes, both with JORC-compliant resources and evidence of open mineralisation. Nearby prospects such as Mt Scheelite and Little Duke add to the district-scale exploration upside, with indications of IOCG-style mineralisation that could underpin longer-term growth.

Funding and Next Steps

To fund the acquisition and development plans, AuKing intends to conduct a significant capital raising via a renounceable rights issue to existing shareholders. The shares issued to Orion shareholders will be priced in line with this offer, aligning interests and supporting a smooth transition. The company is also finalising an $8 million facility agreement to support acquisition funding.

Key upcoming milestones include securing ASX confirmation regarding listing rule compliance, convening an extraordinary general meeting for shareholder approval, and completing financial close by late October 2025. Following this, AuKing will engage the project team to advance detailed planning and initiate drilling programs aimed at upgrading resources and delineating high-grade zones.

A Clear Pathway to Production and Discovery

AuKing’s Managing Director, Paul Williams, emphasised that full ownership removes previous complexities around joint venture management and funding. This clarity allows the company to focus on development and exploration with a unified strategy. The acquisition positions AuKing not only as a near-term gold and copper producer but also as a potential discoverer of Tier-1 deposits in a historically rich mining district.

With the Cloncurry Gold Project’s combination of proven resources, modern infrastructure, and extensive exploration targets, AuKing is poised to capitalize on a strong gold market while building a platform for sustained growth.