AuKing Mining has signed a binding term sheet with Resource Mining to grant the latter an option to acquire all of its interests in its joint venture (JV) projects in Saudi Arabia.
Formed in partnership with BSMC, the Saudi Arabian JV comprises two key projects. These include the Wadi Salamah project owned by BSMC and the Shaib Marqan project, awarded by the Saudi Ministry of Industry and Mineral Resources.
An exploration licence has recently been secured for the Wadi Salamah project, while steps are being taken to obtain the Shaib Marqan project licence.
Under the terms of the JV, AuKing Mining has the right to earn a 70% interest by funding project-related expenditures through to the feasibility study stage.
Located 90km from Damman Port, the Shaib Marqan project licence encompasses commodities including silver, gold and copper.
As part of a strategic shift to focus on its Orion Cloncurry project and other exploration priorities, AuKing Mining has opted to transfer its Saudi Arabian JV obligations to Resource Mining.
AuKing Mining managing director Paul Williams said: “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.”
The binding term sheet outlines that Resource Mining will have a 30-day exclusive option to acquire AuKing Mining’s rights, obligations, and interests in the JV, starting from the grant of the Shaib Marqan licence.
Resource Mining is not required to make any financial payment to exercise the option.
Instead, the company will assume all of AuKing Mining’s obligations under the joint venture. At its own expense, it will support BSMC in securing the Shaib Marqan licence and commence exploration activities at the Wadi Salamah project.
If Resource Mining does not exercise the option, AuKing Mining’s interests in the Saudi Arabian JV will automatically revert to BSMC without consideration.
