AuKing’s Managing Director, Mr Paul Williams, said that on 27 November 2024, the Company announced to the ASX the proposed transaction with Orion Resources Pty Ltd (“Orion”), which included the proposed earn-in of 15% of the Cloncurry Project interests via an acquisition of shares in Orion. Since that announcement, the newly-constituted Board of AuKing has taken the decision that it cannot now direct resources and available funds to the new Saudi Joint Venture. As a consequence (and with permission from the local Saudi partner, Barg Alsaman Mining Co (“BSMC”)), AuKing has entered into the option with RMI, providing for that company to assume AuKing’s position in the Saudi JV with BSMC.
Saudi Joint Venture Update
In conjunction with BSMC, Auking has now established its Joint Venture in Saudi Arabia with BSMC (“Saudi JV”) and a new JV company has been incorporated. Under the terms of the Saudi JV, Auking has the right to earn a 70% joint venture interest by incurring project- related expenditure up to the stage of a feasibility study for the particular project. At the present time, the Saudi JV has two (2) project interests – first, the BSMC-owned project known as “Wadi Salamah” and the Shaib Marqan project awarded by the Saudi Ministry of Industry and Mineral Resources (“Ministry”) (see ASX announcement by AuKing on 6 November 2024). An exploration licence has just been granted for Wadi Salamah and steps are being taken with the Ministry in order to secure the Shaib Marqan licence.
RMI Option
As a consequence of the Board’s decision to focus efforts on Orion’s Cloncurry Project and its other existing exploration interests, AuKing has entered into a binding term sheet with RMI, whereby RMI has an exclusive right to acquire AuKing’s interests in the Saudi JV. Key provisions of the term sheet include the following:
AuKing will keep the market updated as this proposed transaction progresses.
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