ASX-listed AuKing Mining has struck a binding heads of agreement to acquire 100% of Orion Resources, securing full ownership of the Cloncurry gold project in north-west Queensland.

The proposed A$16.28-million all-share transaction will consolidate the project under AuKing’s control, valuing the Cloncurry asset at A$33-million on a 100% basis. The deal remains subject to shareholder approval and certain statutory and ASX confirmations.

The company said the move would accelerate its initial 50% acquisition of Orion, originally priced at A$5-million, paving the way for complete ownership of a project that has delivered high-grade gold results and shows potential for an underlying iron-oxide copper/gold (IOCG) system.

A key feature of Cloncurry is access to the permitted 280 000 t/y Lorena processing plant. AuKing said the facility could underpin a “hub-and-spoke” strategy by treating both its own ore and third-party feed, providing additional revenue streams and regional leverage.

The project spans about 447 km² of granted mining and exploration tenure, centred on the Mt Freda and Golden Mile deposits. Historical drilling has defined Joint Ore Reserve Committee-compliant resources, while prospects including Mt Scheelite and Little Duke add significant exploration upside.

AuKing MD Paul Williams commented in a statement that full ownership of Orion would give the company a clear development pathway. “We recognised that investors were uncertain about how AuKing’s previous 50% acquisition would work in terms of project management and funding. Moving to full ownership removes that complexity and allows us to treat Cloncurry as a wholly-owned AuKing asset. This means we can focus entirely on development activities, supported by Orion’s existing experienced project team," he explained.

"The board views this acquisition as a substantial opportunity to transition AuKing into a gold and copper developer and near-term producer while generating significant value for shareholders,” he said.

The Cloncurry district has a long history of high-grade production dating back to the early 20th century. AuKing said the consolidated project provided not only a restart pathway but also the potential for the Lorena plant to act as a regional processing hub for stranded deposits across the region.