Australian explorer AuKing Mining (ASX: AKN) has announced it is expected to re-list on the ASX next week after closing its public offer “well oversubscribed”.
The company had launched a prospectus in March seeking to raise $6 million through the issue of 30 million shares at $0.20 each with one free-attaching option for each two shares subscribed for, exercisable at $0.25 on or before 30 June 2023.
AuKing’s board today confirmed it has accepted oversubscriptions for a further 5 million shares to raise a total of $7 million, with applications even exceeding this oversubscription.
The board also revealed that “excellent progress” has been made with various outstanding matters associated with its planned 75% acquisition of Anglo Australian Resources’ (ASX: AAR) Koongie Park copper-zinc project in Western Australia.
AuKing is proposing to implement a range of exploration activities at Koongie Park as soon as possible after ASX re-admission.
“Significantly, negotiations and preparations are being finalised to allow for [the company] to commence a substantial drilling program in and around the two primary deposits, Onedin and Sandiego,” it reported.
AuKing added that the success of the $7 million capital raising places it in a position to accelerate these proposed exploration activities at Koongie Park.
Shareholder approval and share consolidation
AuKing conducted an extraordinary general meeting (EGM) on 21 May in which all resolutions were approved by substantial majorities. One of these included the approval to consolidate every 200 of the company’s issued shares into one share, which has now been completed.
Trading is expected to commence subject to and following the company satisfying the requirements of Chapter 1 and 2 of the ASX Listing Rules for readmission, which is anticipated on 15 June.
In accordance with these EGM approvals, the company also issued 20.6 million new shares with 10.9 million of those subject to 24 months escrow restriction and 2.5 million shares subject to 12 months escrow restriction. Accordingly, 22.27% of the company’s total issued share capital upon ASX readmission will be subject to escrow restrictions for varying periods.
AuKing also announced the proposed appointment of new directors to the board, which are expected to take effect prior to ASX readmission.
Dr Mark Elliott has been proposed as the new chairman, replacing Dr Huaisheng Peng. Dr Elliott has more then 40 years of experience in resource projects and has held chairman and managing director roles for several ASX-listed resource companies including West African explorer Mako Gold (ASX: MKG).
The appointments of Peter Tighe, Ian Hodkinson and Shizhou Yin as new directors were also strongly supported by shareholders at the EGM.