AuKing Mining Ltd (ASX:AKN) has completed its purchase of the Myoff Creek niobium/rare earth elements (REE) project in British Columbia, Canada, where it is set to immediately begin work with an “aggressive approach to exploration”.
AuKing managing director Paul Williams said, “We are continuing to see strong interest from investors with companies seeking to develop critical minerals projects, especially niobium and rare earths.
“The Myoff Creek Project presents AuKing with an excellent opportunity to attract some of that investor attention.
“While we aim to continue with exploration activities at our other projects, including the Mkuju uranium project in Tanzania, the immediate focus of our exploration team will be to generate results from Myoff Creek over the coming weeks.”
Myoff Creek acquisition complete
AuKing has now completed the acquisition of all the shares in North American Exploration Pty Ltd (NAE), which owns 100% of the eight contiguous claims that comprise the Myoff Creek Project.
In consideration for the acquisition, AuKing will issue 57 million new AKN shares at 1.5 cents per share and 28.5 million free-attaching options exercisable at 3 cents on or before April 30, 2027, to the existing NAE shareholders and their nominees. AuKing paid a non-refundable A$50,000 fee on signing the agreement on July 22.
A total of 40 million new AKN shares have been issued to the NAE vendors, with the balance of 17 million shares and 28.5 million options to be issued upon shareholder approval at an extraordinary general meeting that will take place “as soon as possible”.
Exploration ahead
AuKing’s exploration team will conduct a site visit in early August to initiate the first phase of exploration. The team will assess potential drill sites and organise the logistics of an upcoming work program, which is expected to include a comprehensive sampling program paired with a drilling campaign aimed at further evaluating the mineral potential at depth and along strike.
The company notes that the region is currently experiencing serious bushfire emergencies which may curtail the site visit planning but it will know more closer to the time.
The Myoff Creek Project is in the strategic South-Central mining region of British Columbia, an area renowned for its rich mineral deposits, mineral extraction and processing.
British Columbia hosts several significant niobium/REE projects including the 34.2 million tonnes at 2% TREO Wicheeda Project, the 53 million tonnes at 1,680 ppm niobium Blue River Project and the South-Central region hosts major mining operations including Teck Resources’ Highland Valley Copper Mine and Hudbay Minerals’ Copper Mountain Mine.
Rights issue to existing shareholders
Seeking to reward existing shareholders with the opportunity to participate in the fundraising process, the company has also proposed to conduct a rights issue.
The rights issue will raise funds needed to commence the proposed exploration activities at Myoff Creek and other planned exploration activities across its portfolio of projects, which comprises the Koongie Park Copper-Zinc Project in Western Australia and a number of uranium and copper projects in Tanzania.
The company expects to appoint Empire Capital Partners Pty Ltd as lead manager to oversee the rights issue and ensure any shortfall from existing shareholders is placed to sophisticated and strategic investors. AKN expects to provide further details about the proposed offer shortly.