AuKing Mining raising $7.1m to lock-in ownership and advance Koongie Park copper-zinc project
Junior explorer AuKing Mining (ASX: AKN) has launched a $7.1 million capital raising to lock-in ownership and fund drilling and further exploration work at the Koongie Park copper-zinc project in Western Australia.
The proceeds will also cover the cost of acquiring the final 25% equity interest in the project currently held by joint venture partner Anglo Australian Resources (ASX: AAR).
The raising will be achieved by way of a two-tranche share placement and underwritten entitlement offer to existing investors.
Firm commitments have already been received for the initial placement at $0.14 per share to raise approximately $3.61 million.
The placement was managed by Vert Capital and is believed to have been oversubscribed.
Placement and rights issue
It will be executed in two tranches with the first tranche of 18.82 million shares to be settled shortly and the remaining 7 million shares being issued after an annual general meeting next month.
A pro-rata non-renounceable rights issue to eligible shareholders on the basis of one new share for every three held will be on the same terms as the placement to raise a maximum $3.51 million.
AuKing expects to issue approximately 25 million new shares and 8.3 million free-attaching options as part of the issue, with Vert agreeing to underwrite any shortfall of applications.
Consideration for Vert’s services will be paid as 6% of all funds raised and the issue of 20 million AuKing options.
AuKing chief executive officer Paul Williams said proceeds of the raising would fund further exploration at the Onedin, Sandiego deposits and the Emull prospect and enable the $3 million acquisition of Anglo’s equity in Koongie Park.
“This funding will enable us to carry out our extensive proposed drilling and exploration program for 2022,” he said.
“On successful completion of the rights issue, we will proceed to complete the acquisition of 25% in the joint venture and 100% of the PGE (platinum group elements) and gold interests at Koongie Park.”