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AuKing Mining to buy Malawi Machinga heavy rare earth project
The deal is conditional on approval by Malawi’s mining regulator and includes cash, share issuance, and performance milestones tied to a JORC mineral resource.
AuKing Mining has agreed to purchase 100% of the Machinga Heavy Rare Earth Elements, HREE, project in southern Malawi, covering two exploration licences totaling about 200.4 square kilometers.
The project sits nearly 20 kilometers north of Zomba and about 40 kilometers east of Lindian Resources’ Kangankunde Project, and the acquisition is subject to approval from Malawi’s Mining and Minerals Regulatory Authority.
Under the staged structure, AuKing has already paid a non-refundable A$5,000 to secure exclusivity and completed due diligence and required approvals. After completion, it will pay A$750,000 in cash and issue A$750,000 in ordinary shares priced at A$0.025 per share, plus A$1.25 million in performance shares.
The performance shares depend on milestones, including reporting a Joint Ore Reserve Committee, JORC, compliant mineral resource of at least 10 million tonnes at 0.65% total rare earth oxides within three years, with prior exploration noting mineralisation along a 2 kilometer strike length and grades including 15.1 meters at 1.01% TREO.