AuKing Mining (ASX:AKN) has reached a key agreement to secure up to a 50% shareholding in Orion Resources, the prospective owner of the Cloncurry Gold Project in northern Queensland.
Under the revised agreement, AuKing's stake in Orion will increase from an initial 15%—earned through a $1.5 million project expenditure—to 50% by committing a total of $5 million in funding by June 30, 2027.
Orion is currently finalising its acquisition of the Cloncurry Gold Project, with financial closure expected in April.
The project includes the Lorena gold processing plant, located 15km east of Cloncurry, and various mining and exploration tenements spanning 447km2.
Orion plans to restart operations at Lorena and integrate mining from the Mt Freda/Golden Mile deposits and Tick Hill mine tailings as part of a regional processing hub.
The revised agreement also ensures AuKing's involvement in resource development, drilling, and refurbishment efforts at the Lorena plant.
Upon completion of the earn-in, a joint venture will be established, granting AuKing a 50% stake in Orion.
Should AuKing fail to meet the $5 million expenditure requirement, its interest in the project will lapse.
Orion will fund the purchase of the Cloncurry Gold Project independently, with no additional financial obligations from AuKing beyond the agreed investment.
