In a significant move to bolster its critical minerals portfolio, AuKing Mining has agreed to acquire Green Exploration a subsidiary of Tusker Minerals for approximately US$3.44 million. This strategic acquisition includes a suite of rare earth and copper-platinum group element projects across Malawi positioning AuKing for enhanced exploration and development activities.
The binding share sale agreement replaces an earlier exclusivity arrangement that focused solely on the Machinga heavy rare earths project. By acquiring Green Exploration, AuKing gains control of the Machinga site, along with the Ngala HillSalambidwe and Karonga exploration licenses. Tusker Minerals will retain ownership of the Mzimba rutile project transferring the relevant licenses out of the subsidiary before the deal’s completion on September 30, 2026.
Key Projects and Performance-Linked Incentives
The acquisition includes several high-potential projects. The Machinga project is a heavy rare earths site, while Salambidwe offers rare earth exploration opportunities. The Ngala Hill project is rich in platinum group elementsgold and copper and Karonga presents an earlier-stage copper opportunity.
The transaction also includes performance-linked share tranches. AuKing will issue AU$1.25 million in shares if it announces a JORC-compliant resource at Machinga of at least 10 million tons at 0.65 percent total rare earth oxides within three years. Additionally, a AU$500,000 share tranche is contingent on achieving specified drill intercepts at Ngala Hill. Tusker will pay a 4 percent facilitation fee to Moa Mining Pty based on the total consideration.
Strategic Implications and Future Plans
Cliff Fitzhenry CEO of Tusker Minerals, commented on the transaction: “This expanded transaction builds on our disciplined approach to portfolio optimisation. The structure delivers non-dilutive funding, sharpens our focus on titanium feedstocks, and preserves meaningful upside to rare earths and the Ngala Hill opportunity through our ongoing equity and performance share position in AuKing.”
For AuKing Mining, this acquisition consolidates its operational base in southern Malawi, bringing the new assets closer to its existing Tundulu rare earths project. Paul Williams Managing Director of AuKing, noted that historical exploration and recent work by DY6 Metals and Tusker Minerals have confirmed the potential for significant mineral discoveries at Salambidwe and Ngala Hill. AuKing plans to commence exploration activities on the properties immediately following the completion of the acquisition.
Looking ahead, AuKing intends to separate the base metals from its core rare earth operations by bundling Ngala Hill and Karonga into a proposed copper-focused spinoff. This move aims to streamline operations and maximize the value of its diverse portfolio.
Exploration and Development Momentum
AuKing is also building momentum at its existing Tundulu rare earths project, where drilling has encountered promising carbonatite geology. The company has completed 4,300 meters of reverse circulation drilling and extended its first diamond hole to 510.6 meters due to continued carbonatite observations. This geological logging supports a broader and deeper interpretation, indicating the potential for significant mineral resources.
As AuKing prepares to analyze drilling samples and expects a substantial flow of assay and geological data, the company aims to release a maiden Tundulu Mineral Resource Estimate before the end of the year. This acquisition and ongoing exploration activities position AuKing Mining for substantial growth in the critical minerals sector.
