AuKing Mining Limited (ASX: AKN), a company focused on discovering and developing strategic resource opportunities, has finalised security documents with RiverFort Global Capital Limited for a $5 million credit facility. The funding will expedite large-scale exploration and project development at the Cloncurry Gold Project in north-west Queensland, supporting the company’s path towards gold production. An initial drawdown of $500,000 from the facility will be used to retire a short-term GAM loan, provide working capital, and cover Cloncurry Project acquisition costs.
The Cloncurry Gold Project spans a 447 square kilometre licence area, offering significant exploration and development potential around historic mining deposits. AuKing believes the project, supported by existing infrastructure and the nearby Lorena CIL plant, presents a compelling gold development opportunity with a clear path to near-term gold production. Nebari has completed its technical and legal due diligence on the Cloncurry Gold Project, clearing the way for acquisition completion.
Mr. Paul Williams, Managing Director of AuKing, stated that securing the RiverFort financing is a significant step in acquiring the Cloncurry Gold Project and a positive endorsement of the project’s value. He added that the RiverFort facility provides flexibility for the project team to focus on development activities immediately after financial close occurs. AuKing, together with its acquisition partner, Orion Resources, plans to finalise the Cloncurry Gold acquisition in the coming weeks.
The RiverFort facility has a three-year term, with each drawdown repayable within 12 months. It carries a 10% fixed interest rate paid in cash on maturity and is secured by a general security over the company’s assets. RiverFort will also receive options in the company equal to 40% of each Drawdown divided by the Reference Price, exercisable at a 50% premium to the relevant Reference Price.
