Tanzanian uranium asset acquisition on track
Our exploration junior AuKing Mining (ASX:AKN) remains on track to add highly prospective Tanzanian uranium and copper assets into its portfolio by the end of the year.
This follows shareholder approval for the acquisition at its EGM last Friday.
As announced in mid-October (and as we covered here), AKN agreed to pay $6M in scrip to acquire 100% interest in six projects in Tanzania, namely:
- Four prospective projects for uranium (namely Mkuju, Manyoni, Itigi and Magaga) and
- Two prospective projects for copper (namely Mpanda and Karema).
We consider these uranium projects as highly prospective, given that they are either nearby, or include, areas subject to significant prior exploration and development up until 2012/2013. The two of most interest are:
- Mkuju - this project is just north of the Nyota Project which hosts a non-JORC uranium resource of 108.9Mt @ 422ppm U3O8 (101.4Mlbs contained U3O8).
- Manyoni - previous owner Uranex NL, now Magnis Energy Technologies – hosts a 92Mt @ 144ppm U3O8 non-JORC resource (29Mlbs contained U3O8).
We also like that the vendor - Mr Asimwe Kabunga - is joining AKN as Chairman, pointing to his commitment and belief in these projects.
Asimwe’s track record is impressive. He was central in bringing Tanzanian deals into three other ASX listed companies, all of which have had significant recent success, namely:
- Lindian Resources (capped at $141M - up over 400% for the year),
- Volt Resources (capped at $58M) and
- Resource Mining (capped at $36M - up over 160% for the year).
As now with AKN, Asimwe is on the board and maintains substantial holdings in each of these companies.
What’s next?
Subject to final due diligence, expected shortly, the acquisition should be formally completed by the end of the year.
AKN is already planning exploration programs at key prospects, Manyoni and Mkuju, expected to commence early in 2023. An upgraded resource estimate for Manyoni to JORC 2012 standards is expected by February 2023.
