AuKing Mining Ltd (ASX:AKN) is trading higher on confirming the acquisition of six substantial tenures in Tanzania that are prospective for uranium and copper development opportunities.
The company has acquired a 100% interest in four projects that are prospective for uranium - Mkuju, Manyoni, Itigi and Magaga - and two that are prospective for copper - Mpanda and Karema.
In conjunction with the acquisition, AuKing proposes to carry out a two-staged capital-raising exercise for private sophisticated investors seeking to raise about 3.5 million pounds.
And in a further boost, Perth-based businessman Asimwe Kabunga joins the AKN board as co-chairman with Anna Nahajski-Staples remaining as co-chair.
Investors have responded positively to these developments, pushing the company's shares as much as 39.8% higher this morning to $0.13.
“Highly prospective”
AuKing CEO Paul Williams said “The proposed acquisition of highly prospective Tanzanian uranium and copper assets is an important and exciting opportunity for AuKing.
“The company now has the ability to pursue and develop uranium assets in a stable African jurisdiction at a time when there is significant renewed interest in the development of uranium projects.
“At the same time, the company will be able to continue with its focus on developing the Koongie Park Copper-Zinc Project in Western Australia.
“In addition, the appointment of Mr Kabunga as chairman will add another person to the board extremely focused on generating shareholder value as well as establishing a successful mining operation to create jobs and opportunities in Tanzania – a country clearly promoting its mining sector.”
New tenure
AuKing’s newly acquired uranium tenure is either nearby or includes areas subject to significant prior exploration and development up until 2012/2013 including:
- Nyota (owned by Uranium One/ARMZ) – just north of Mkuju - 108.9 million tonnes at 422ppm uranium; and
- Manyoni (previous owner Uranex (ASX:UNX) NL) – 92 million tonnes at 144ppm uranium.
Meanwhile, the Mpanda Copper Project is about 10 kilometres from the historic Mukwamba copper mine that operated between 1930 and 1960.
Incoming co-chairman Asimwe Kabunga said “This is an outstanding acquisition for AKN that delivers a significant value opportunity for shareholders.
“The potential of the uranium areas (especially Manyoni and Mkuju) cannot be overstated when you consider the volume of historical exploration work that has already been undertaken in these areas and the fact the ground has been highly sought after in recent years.
“A focus of AKN will be to work constructively with the Tanzanian Government and take all possible steps to bring projects into production, take advantage of a strong uranium market and deliver meaningful benefits to the Tanzanian mining sector.
“In addition, AKN has the potential to bring its “Koongie Park Copper-Zinc Project closer to production – thereby affording shareholders with a multitude of scenarios that can provide significant value growth.”
Funding
In conjunction, AuKing plans to carry out a two-staged capital raising exercise seeking to raise approximately $3.5 million.
Funds will be placed to private sophisticated investors introduced to the company by Perth-based firm Ven Capital Pty Ltd.
The first stage (T1 placement) involves the issue of about 13.7 million new shares at 10 cents per share together with 6.87 million free-attaching options exercisable at 20 cents on or before September 30, 2025.
The second stage (T2 placement) involves the issue of about 21.3 million new shares and 10.6 million free-attaching options exercisable at 20 cents on or before September 30, 2025.
The T1 placement has already been filled with a total of $1.37 million either received or committed to AKN.
Accordingly, the final T1 placement is expected to close later today or tomorrow.
Forward plan
Upon completion of the acquisition, a summary of the activities to be conducted by AuKing utilising the funds raised from the T1 and T2 placements include:
Koongie Park
- Establish initial resource estimate for Emull.
- Further drilling at Emull seeks to extend the existing copper-zinc resource.
- Continuation of metallurgical test-work at Onedin and assessment of project development options.
- Assessment of other prospects in the tenure holding including additional resource tonnes at depth at both Onedin and Sandiego.
Tanzania
- Mkuju – further sampling and ground scintillometer surveys; follow-up field sampling and auger drilling and trenching.
- Manyoni – review existing data and identify additional information needed to upgrade the existing resource estimate; assess further drilling to expand existing resources.
- Itigi/Magaga – develop initial sampling programs.
- Mpanda/Karema – initial site access, soil sampling, review of available historic data.