MC at 0.01 = app $8.86m
Cash $1.89 as of Mar 31st
EV $7m
Soon to pay $350k cash and issue $125k worth of scrip for
a share of Bonito Minerals (see more detail below)
SOI 886,914,837
Gold and silver in Mexico and a mooted upcoming acquisition in Australia or DRC for CU/AU or other base metals.
Auking Mining (AKN) - formerly CYU- have now undergone all the preliminary work to remodel themselves and are now ready to acquire a near term mining project that can enable them to transition towards being a mid-tier mining group. In the last year they have:
-brought in a new major shareholder (large Chinese mining services company)
-raised funds at 1c and again at 0.6c including $100,000 worth by MD Paul Williams
-divested all but one of their Mt ISA tenements (significantly reducing cash burn)
-announced the acquisition of a share of Bonito Minerals who have the rights to significant gold and silver tenements in Mexico
-changed their name to Auking Mining to rebrand and reflect the move away from the previous major shareholder
Major Shareholder Founded in 1997, the privately-owned JCHX Group controls one of China’s largest mining service companies, JCHX Mining Management Co., Ltd which currently manages more than 30 mining operations throughout China, and other parts of the world, including 4 mining projects in Zambia, Africa. JCHX Mining Management Co., Ltd was listed on the Shanghai Stock Exchange in June 2015 after the company successfully raised ¥1.633 billion (A$360million).
Funds Raised
JCHX Group, through a 100% subsidiary, Bienitial International Co., Ltd (“BIC”) agreed to provide initial funding to CYU of an amount of A$1,182,490, which was in the form of a share placement of 118,249,000 ordinary CYU shares at an issue price of A$0.01per share - issued 4th March 2016.
On 20 September 2016, CYU announced a non-renounceable entitlement offer to existing shareholders at A$0.006 per share. The Offer closed on Friday, 14 October 2016. Together with the additional subscriptions from the Offer’s Underwriters (Bienitial and Paul Williams), a total of 295,638,362 new shares were issued by CYU, creating a new total issued capital for CYU of 886,914,837 ordinary shares. CYU raised a total of $1,773,830 from the Offer. As a consequence of completion of the Offer, the holdings of CYU’s two substantial shareholders changed as follows:
* Bienitial International increased from 118,249,000 (19.9%) to 349,018,230(39.35%);and
* China Yunnan Copper (Australia) Investment and Development Co Ltd – shareholding of 299,922,326 did not change but percentage reduced from 50.72% to 33.82%.
Mexico Acquisition
Taken from Ann June 1st
* On 27 April AKN entered into a binding term sheet to acquire an initial 30% interest in Bonito Minerals Pty Ltd (“Bonito”).
* Bonito holds an option to purchase the “La Dura” project area across five (5) mining concessions located in Durango State, Mexico. The La Dura concessions sit in the highly mineralised Sierra Madre Occidental – a region that has seen approximately 40M ounces of gold and 1.2Bn ounces of silver and other base metals produced over the past 400 hundred years.
* After conducting a due diligence review, AKN’s Board has decided to proceed with the Bonito acquisition. AKN will pay an initial A$475k (A$350k cash and AKN shares to a value of A$125k) under the deal.
* AKN has recently completed a site visit to La Dura. High grade assay results have been obtained from samples of material taken from the underground workings and surrounding areas including: 18.7g/t Au and 514g/t Ag 26.4g/t Au and 988g/t Ag 36.4g/t Au and 1170g/t Ag.
* Bonito’s representatives are now preparing for an initial exploration drilling program scheduled to commence in August 2017.
The full announcement is well worth a read and goes into detail of AKN's options to purchase up to 50% of Bonito Minerals and also the RC samples obtained on the recent site visit.
Ann can be read here: https://hotcopper.com.au/documentdownload?id=uOMxKKzFkiWRTLKhOROKAxjvSDYL4w+6wRf/v/Zy8bFiGug=
Change of company name
Proposed Change of Name
At the AGM, under Resolution No 5, CYU will be seeking approval from shareholders to change the name of the Company to “AuKing Mining Ltd”. Resolution No 5 is a special resolution – thereby requiring a 75% majority of those shareholders who vote to approve the name change. This name change was considered appropriate since Chinalco/Yunnan Copper Group is no longer the Company’s largest shareholder and also reflects the intention of the Board that the Company is conducting mining operations in the near-term future. If this resolution is approved at the AGM, the Company’s new ASX Code will be “AKN” and logo will be as below:
Further Acquisition
AKN have been flagging potential Copper/Gold or other base metal acquisition for some time and now that all of the above is complete, they would seem ready to move. I feel there is a reasonable chance of a significant new project being announced in the next four weeks but let's see what happens.
