AuKing Mining (ASX:AKN)

Saudi Arabia Joint Venture Update – AuKing grants option to acquire its JV Interests

AuKing Mining Limited (ASX: AKN) wishes to advise that it has entered into a binding term sheet with ASX-listed Resource Mining Corporation Limited (ASX:RMI) granting RMI an option to purchase all of AuKing’s interests in its Joint Venture arrangements that have been established in Saudi Arabia.


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:

  • RMI has an option to purchase all of Auking’s rights, obligations and interests in the Saudi JV, for a period of thirty (30) days commencing after the grant by the Ministry of the Shaib Marqan licence (“RMI Option”);
  • No consideration is payable by RMI to AuKing in respect of the exercise of the RMI Option, other than RMI’s agreement to:
    • Assume all of AuKing’s obligations under the Saudi JV; and
    • (at its own expense and at no cost to AuKing), RMI assisting BSMC to secure grant of the Shaib Marqan licence and the commencement of exploration activities at the Wadi Salamah project.
  • In the event that the RMI Option is not exercised, AuKing’s interest in the Saudi JV will automatically revert to BSMC, for no consideration.

AuKing will keep the market updated as this proposed transaction progresses.


Click here for the full ASX Release

This article includes content from Auking Mining, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

AKN:AU
The Conversation (0)
RMI: granted option to acquire JV interests in Saudi Arabia

RMI: granted option to acquire JV interests in Saudi Arabia

AuKing Mining (AKN:AU) has announced RMI: granted option to acquire JV interests in Saudi Arabia

Download the PDF here.

Per Jander, uranium periodic symbol.

Per Jander: Uranium Still "Very Early" in Cycle, What to Watch in 2025

Per Jander of WMC shares his thoughts on uranium, touching on supply, demand and prices.

In his view, the uranium market is still "very early" in the current cycle.

Watch the interview for more, or click here for the Investing News Network's Prospectors & Developers Association of Canada convention playlist on YouTube.

Keep reading...Show less
Nuclear reactors.

US Electricity Demand to Surge — Nuclear Energy Key, but Supply Challenges Remain

The US is on the brink of an unprecedented rise in electricity demand, with projections showing a 35 to 50 percent increase by 2040, according to data from S&P Global Commodity Insights.

This surge, largely driven by artificial intelligence (AI) data centers, manufacturing expansion and mass electrification, underscores an urgent need for a diversified energy strategy.

While renewable energy and natural gas will both play vital roles, nuclear power is emerging as a key component — though its growth may be constrained by uranium supply challenges.

Keep reading...Show less
Australian money spilling out of sack.

Boss Energy Boosts Stake in Laramide Resources to 18.4 Percent

Multi-mine uranium producer Boss Energy (ASX:BOE,OTCQX:BQSSF) has agreed to acquire approximately 9 percent of the issued shares of Laramide Resources (ASX:LAM,TSX:LAM,OTCQX:LMRXF).

In a Thursday (March 13) release, Boss states that it will purchase 23.5 million Laramide shares in total, valued at C$0.60 each. In total Boss will pay AU$15.5 million, providing Laramide with approximately AU$3.9 million in cash; the remaining AU$11.7 million will be in Boss scrip, with the company issuing about 5.2 million new fully paid ordinary shares.

Boss clarified in the announcement that while this purchase increases its interest in Laramide to around 18.4 percent, it currently has no intention of making a takeover offer for Laramide.

Keep reading...Show less
Eclipse Metals

Eclipse Metals and Boss Energy Sign Binding Option & Earn-In Agreement for Liverpool Uranium Project

Eclipse Metals Ltd (ASX: EPM) (Eclipse Metals or the Company) is pleased to announce the execution of a binding option and earn-in agreement with Boss Energy Limited (ASX: BOE) (Boss). Through the agreement, Eclipse and its wholly owned subsidiary North Minerals Pty Ltd have granted Boss Energy the option to earn up to an 80% interest the Liverpool Uranium Project, located in the highly prospective Alligator Rivers Uranium Field of West Arnhem Land, Northern Territory (the Project).This strategic alliance seeks to unlock the significant potential of the Project through a structured investment and exploration program.

Keep reading...Show less
Australian Rare Earths

AR3 Intersects Shallow Uranium Occurrence at Overland

Australian Rare Earths Limited (ASX: AR3) is pleased to announce highly encouraging results from its ongoing exploration drilling program at the Overland Uranium Project.

Keep reading...Show less

Latest Press Releases

Related News

×