Brisbane-based AuKing Mining (ASX:AKN) has declared a strategic collaboration with Gage Capital Management, a finance group headquartered in Beijing.
The transaction includes the issue of 60 million new shares and the divestment of two prospecting licences in Tanzania.
Under the dual agreement, Gage Capital's Australian subsidiary, Gage Resources, will subscribe to 60 million new shares issued by AuKing at $0.005 each.
The share placement will augment AuKing's working capital by $300,000 and will see Gage Capital hold approximately 10% of AuKing's total shares.
The board of AuKing Mining expressed enthusiasm for the deal, highlighting Gage Capital's extensive experience with investments in ASX-listed resource firms.
Gage's strategic investment is expected to bolster AuKing's projects in Australia, Tanzania, and Canada.
In a simultaneous agreement, Gage Capital is set to acquire two of AuKing's non-core prospecting licences in the Mkuju region of southern Tanzania for $300,000.
AuKing assured stakeholders that the sale of these licences will not affect its commitment to the Mkuju uranium project, as the transferred areas lack high-priority drilling targets.
At the time of reporting, Auking Mining's share price was $0.0040.
