AuKing Mining to Acquire Green Exploration for Up to $4.85M

AuKing Mining (ASX: AKN) has struck a deal to buy 100% of Green Exploration from Tusker Minerals (ASX: TSK), adding four Malawi projects to its portfolio. The acquisition covers the Machinga heavy rare earths project, Salambidwe rare earths project, Ngala Hill project, and Karonga copper project.

Total consideration reaches up to $4.85 million through staged cash, AuKing shares, and performance-linked equity. Tusker will receive $800,000 in cash at completion, $1.0 million in AuKing shares priced at 2.5 cents, another $50,000 within 90 days, and $1.25 million after 12 months. Additional performance shares could deliver up to $1.25 million tied to Machinga reaching a compliant resource of at least 10 million tonnes at 0.65% total rare earth oxides using a 0.5% cut-off, plus $500,000 linked to Ngala Hill drilling thresholds.

AuKing said the incremental consideration beyond its earlier Machinga-only terms amounts to $50,000 cash and $250,000 of shares at completion, another $50,000 within three months, and up to $500,000 of Ngala Hill performance shares.

The deal replaces a prior exclusivity arrangement covering Machinga alone. The Machinga licences will remain within Green Exploration as the Malawian subsidiary becomes wholly owned by AuKing. Tusker retains beneficial ownership of its Mzimba rutile licences, which will be transferred out of Green after completion.

Completion is conditional on approvals including ASX confirmation that full quotation re-compliance is not required. The parties target satisfying all conditions by September 30.

Salambidwe covers about 24.9 square kilometres and has not been drilled. Historical surface exploration returned rare earth and niobium anomalism, including rock-chip results of up to 2.05% total rare earth oxides. AuKing plans to reprocess existing geochemical and geophysical data before targeted mapping and sampling, aiming to define targets for a maiden drilling program.

Ngala Hill spans about 16.4 square kilometres and contains historical mineralisation involving platinum group elements, gold, and copper. AuKing said it has not independently validated the historical exploration and plans modern geological, structural, and electromagnetic work before follow-up drilling.

Karonga is an earlier-stage copper opportunity across 36 square kilometres in northern Malawi. Previous reconnaissance identified elevated copper values. AuKing plans systematic surface work to determine whether more advanced exploration is warranted.

The company is considering a copper-focused spin-off that would combine Ngala Hill and Karonga with its other copper interests. Its immediate exploration focus remains on rare earths in southern Malawi.

At Tundulu, AuKing has completed 4,300 metres of reverse circulation drilling across 31 holes. Geological logging identified widespread carbonatite lithologies around Nathace Hill and at targets several hundred metres away. The first diamond tail was originally planned to reach 300 metres but continued carbonatite observations prompted drilling to 510.6 metres, where logging indicated the geology remained open at depth, supporting a broader and deeper interpretation.

AuKing said those observations remain preliminary. Seven export approvals have been secured for drilling samples, and the first 1,270 samples are already at Intertek's Perth laboratory for analysis. The company expects a substantial flow of assay and geological data over coming weeks and, depending on results, intends to begin preparing a maiden Tundulu Mineral Resource Estimate targeted for release before the end of the year.

The acquisition expands AuKing's position in rare earths, a commodity group that has drawn attention from governments seeking supply chain security.