AuKing Mining's Strategic Acquisition: Myoff Creek Niobium/REE Project
AKN (AKN) Share Update July 2024 Sunday 21st
AuKing Mining Announces Strategic Acquisition of Myoff Creek Niobium/REE Project
AuKing Mining Limited (ASX: AKN) has announced its intention to acquire a 100% interest in the Myoff Creek Niobium/REE project located in British Columbia, Canada. This acquisition marks a significant step for the company in securing valuable mineral resources.
Instant Summary:
- Near-surface carbonatite mineralisation over 1.4 km by 0.4 km area.
- High-grade intercepts include 0.93% niobium and 2.06% total rare earth oxides.
- Significant exploration potential with mineralisation open at depth and along strike.
- Strategic location in South-Central British Columbia mining region.
- Excellent site accessibility with well-maintained road infrastructure.
- Upcoming exploration includes detailed soil sampling and initial drilling program.
- Proposed capital raising of $150,000 and upcoming rights issue to shareholders.
Project Overview
AuKing Mining Limited is set to acquire the Myoff Creek Niobium/REE project, which spans an extensive area of near-surface carbonatite mineralisation measuring 1.4 km by 0.4 km. Historical exploration has revealed high-grade intercepts, including 0.93% niobium and 2.06% total rare earth oxides (TREO).
The project, located in the South-Central mining region of British Columbia, is known for its rich mineral deposits. The mineralisation remains open at depth and along strike, indicating significant potential for further discovery and expansion. Notably, rock chips taken approximately 2 km away from the historically drilled zone have shown maximum detection limits of niobium and cerium.
Strategic Importance
The Myoff Creek project is strategically positioned in a region with excellent road infrastructure, facilitating easy access for exploration and development activities. The site is near the township of Seymour Arm, which provides accommodation and logistical support. Additionally, Kamloops, the major commercial center for the region, offers numerous resources for mining and exploration activities.
British Columbia hosts several significant Niobium/REE projects, including the Wicheeda project with 34.2Mt @ 2% TREO and the Blue River project with 53Mt @ 1,680 ppm Nb. The geological setting of Myoff Creek within the Proterozoic age metamorphic carbonatite belt of the Shuswap Metamorphic Complex further enhances its potential.
Historical Exploration and Future Plans
The Myoff Creek region has been explored intermittently over the past 40 years by various companies. Previous exploration activities have identified a 1.4 km by 0.4 km area of near-surface Nb-REE bearing carbonatite hosted mineralisation. Upon completing the acquisition, AuKing plans to conduct a detailed soil sampling and initial drilling program based on historical workings.
Historical drilling programs in 2011 and 2018 have shown promising results, with significant niobium and TREO intercepts. The upcoming exploration activities will focus on further evaluating the mineral potential at depth and along strike, aiming to uncover additional high-grade nodes within the carbonatite.
Acquisition Terms and Capital Raising
AuKing has entered into an option agreement to acquire all shares in North American Exploration Pty Ltd (NAE), which owns the Myoff Creek project. The agreement includes a non-refundable fee of A$50k and the issuance of 57 million new AKN shares and 28.5 million free-attaching options to NAE shareholders. The option must be exercised by 26 July 2024.
To support the acquisition and upcoming exploration activities, AuKing proposes a placement to raise $150,000 through the issue of 10 million shares at 1.51c each. Additionally, a rights issue to existing shareholders is planned to raise further funds for exploration activities at Myoff Creek and other projects within the company's portfolio.
The acquisition of the Myoff Creek project positions AuKing Mining strategically within the niobium and rare earth elements market, which is experiencing strong global demand. The project's significant exploration potential and strategic location in a well-known mining region are likely to positively impact the company's stock price.
The proposed capital raising and rights issue demonstrate the company's commitment to advancing its exploration activities, which could further boost investor confidence. However, the success of these initiatives will depend on the results of the upcoming exploration program and the overall market conditions for critical minerals.
Investor Reaction:
Investors and analysts have shown interest in AuKing's strategic move to acquire the Myoff Creek project. The project's high-grade intercepts and significant exploration potential have been highlighted as key factors driving positive sentiment. Some investors, however, are cautious about the capital raising and its potential dilution effect on existing shares.
Conclusion:
AuKing Mining's acquisition of the Myoff Creek Niobium/REE project marks a significant milestone for the company. Investors should closely monitor the progress of the upcoming exploration activities and the results of the capital raising initiatives. The company's strategic focus on securing valuable mineral resources positions it well for future growth in the critical minerals market.