AuKing Mining Limited (ASX: AKN) has announced a significant step in its critical minerals strategy with the proposed 100% acquisition of the high-grade Tundulu Rare Earths Project in south-eastern Malawi. AuKing is an Australian exploration company focused on developing a diversified portfolio of critical and other important mineral projects, including copper-zinc-silver, uranium, and tin-tungsten. The Tundulu Project encompasses a 5-kilometre diameter intrusive carbonatite complex, noted as one of Malawi’s largest and most under-explored rare earth systems. Its potential is underscored by historical drilling, which previously targeted phosphate.
Historical exploration at Tundulu has revealed compelling rare earth potential with numerous high-grade intersections. Drilling by JICA in 1987 and Mota-Engil/Optichem in 2014-2015 yielded results such as 41 metres at 3.7% total rare earth oxides (TREO) from 8 metres, and 30 metres at 4.03% TREO from surface. Twenty-four historical drill holes across the project ended in mineralisation, with eight showing greater than 2% TREO. The project’s mineralisation indicates high levels of valuable heavy and medium rare earth elements, coupled with low levels of uranium and thorium. Tundulu is strategically located within an active rare earths district, in proximity to other significant projects like Lindian Resources’ Kangankunde.
The acquisition includes a multi-stage consideration of cash payments, A$1.25 million in AuKing shares, and A$1 million in performance shares contingent on defining a JORC-compliant Mineral Resource of at least 25 million tonnes at 1.25% TREO. To support this and its ongoing operations, AuKing has secured commitments to raise approximately A$3 million through a strategic placement to institutional and sophisticated investors. These funds are primarily allocated for the initial acquisition payment and a planned initial exploration and drilling program at Tundulu, with the aim of delivering a maiden Mineral Resource estimate within the next 12 months.
