AuKing Mining has stellar ASX relisting after raising $7 million

AuKing Mining Ltd (ASX:AKN) has had a stellar reinstatement to official quotation on the Australian Securities Exchange after completing a public share offer to raise around $7 million through the issue of 35 million shares as well as 17.5 million options exercisable at 25 cents expiring June 2023. The capital raising initiative was oversubscribed and provides financial flexibility to progress the 75% earn-in of the Koongie Park Copper-Zinc Project in WA. As a part of the funding exercise, the company has issued 60.2 million shares, creating a market capitalisation of $12 million and an enterprise value of $5 million upon reinstatement of official quotation. Auspicious debut The company had an auspicious debut on its relisting on Tuesday with shares trading in the range of 15 to 17 cents and almost 8.34 million shares changing hands. After closing at 16 cents, AKN has been as much as 6.3% higher today to 17 cents. Pleased to receive strong support CEO Paul Williams said: “We are very pleased to have received such strong support from a range of new investors and to have completed this capital raise, which will allow for our reinstatement to the ASX, as well as the financial flexibility to progress an active works schedule at Koongie Park. “Over the recent months, the company has satisfied a number of conditions to progress the Koongie Park earn-in, and also assembled a leading board and management team with a significant degree of technical, financial and commercial experience.“ Strategy for Koongie Park Koongie Park project is in the highly mineralised Halls Creek region of WA and comprises two mining and eight exploration licences covering 500 square kilometres. The company has a clear strategy for development of the project, which will include a 7,000 metres reverse circulation (RC) and diamond drilling program to commence in August. Koongie Park tenures are highly prospective for the discovery of further volcanic massive sulphide (VMS) deposits and extensions. The purpose of the drilling will include: Infill drilling of the Sandiego and Onedin deposits; Improving interpretation for future resource estimation (designed to update the existing JORC 2012 mineral resource estimates of 6.36 million tonnes at 1.3% copper, 4.1% zinc 0.3 g/t gold and 26 g/t silver); Test potential resource extensions; and Obtain fresh diamond core samples for metallurgical test work. Williams said: “The company has developed a clear strategy for the Koongie Park project, with all activities designed to expand the existing project resources and create a potential pathway towards production within the next three to four years.” Regional exploration The company has also started regional exploration activities including re-interpretation of existing regional and local electromagnetic and magnetic geophysical survey data plus geochemical data to drive future target identification and further drilling.  It also intends to proceed with metallurgical test work to establish a processing solution for the near-surface oxide and transitional ores at the Onedin deposit, as well as reviewing, optimising and updating previous feasibility studies undertaken at Sandiego.