Tanzanian uranium assets acquisition completed
Earlier this morning, our exploration junior Investment AuKing Mining (ASX:AKN) completed its acquisition of a suite of highly prospective Tanzanian uranium and copper assets.
As announced on 19 October 2022, the acquisition for 100% interest in six projects in Tanzania was in exchange for $6M in AKN scrip (see our coverage of the deal here). The project suite comprises:
- Four prospective uranium projects (Mkuju, Manyoni, Itigi and Magaga) and
- Two prospective copper projects (namely Mpanda and Karema).
With the uranium commodity price recently surpassing the US$50/lb benchmark, we are bullish on the sector broadly, and are keen to see AKN progress its two most advanced uranium prospects in Manyoni and Mkuji this year.
- Mkuju - resides next door to an existing substantial U resource, namely the Nyota Project - non-JORC uranium resource of 108.9Mt @ 422ppm U3O8.
- Manyoni - hosts a 92Mt @ 144ppm U3O8 non-JORC resource.
We are also fans of the vendor - Mr Asimwe Kabunga - who has now joined AKN as Chairman. We hope that he can replicate for AKN some of the success he has helped generate in other companies that he has founded (consider $220M-capped Lindian Resources, up ~700% for the year; and $38M-capped Resource Mining, up ~300% for the year).
What’s next?
With the acquisition now completed, AKN will be keen to get on the ground for early exploration field-work.
AKN has earmarked key uranium prospects, Manyoni and Mkuju, as priorities this year. An infill drilling programme at Manyoni is set to start shortly, with an upgraded resource estimate to JORC 2012 standards is expected later this quarter.
