AuKing Mining (ASX:AKN) has agreed to acquire Tusker Minerals’ (ASX:TSK) Malawi-focused subsidiary, Green Exploration, in a deal valued at up to AU$4.85 million. The agreement secures a portfolio of rare earths, copper and platinum-group metals (PGM) projects across Malawi for AuKing.
The binding share sale replaces a previous exclusivity arrangement from earlier this month that solely covered the Machinga heavy rare earths project. By purchasing the wholly owned Malawian subsidiary, AuKing absorbs the Machinga site along with the Ngala Hill, Salambidwe and Karonga exploration licenses.
The acquisition consolidates AuKing’s operational base in Southern Malawi, where it owns the Tundulu rare earths project.
Tusker will keep beneficial ownership of its Mzimba rutile project, transferring those specific licenses out of the subsidiary following completion and before a September 30, 2026, deadline.
Payment for the transaction will build upon the terms of the original Machinga arrangement. Combined, the deal now includes AU$800,000 in cash and AU$1 million in shares payable upon its completion, as well as AU$1.25 million in cash one year after the deal is completed.
The transaction also outlines two performance-linked share tranches.
AuKing will issue AU$1.25 million in performance shares if it announces a JORC-compliant resource at Machinga of at least 10 million tonnes at 0.65 percent total rare earth oxides within three years. A second AU$500,000 performance share tranche hinges on AuKing intersecting two drill intercepts at Ngala Hill that exceed specific copper, gold and platinum assay thresholds.
“This expanded transaction builds on our disciplined approach to portfolio optimisation,” Tusker CEO Cliff Fitzhenry said in his company’s announcement. “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.”
AuKing Managing Director Paul Williams added in a separate press release, “Historical exploration, together with the more recent work undertaken by DY6 Metals/Tusker Minerals, has provided confirmation of the potential for rare earths mineral discoveries at Salambidwe and copper/platinum group element discoveries at Ngala Hill. Both these projects are situated in southern Malawi and not far from AuKing’s existing operational base at Zomba.”
Williams added that AuKing intends to commence exploration activities on the properties immediately following completion of the acquisition, and the release laid out detailed plans for the work.
Long-term, AuKing plans to separate its base metals projects from its core rare earth operations by bundling the Ngala Hill copper-PGM project and the Karonga copper project into a proposed copper-focused spinoff.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: AuKing Mining is a client of the Investing News Network. This article is not paid-for content.
