- Auking Mining (AKN) falls short of its capital raise, triggering a withdrawal of its acquisition agreement with Astral Resources, formerly Anglo Australian Resources
- The company is short of $3.15 million, in the form of 22.5 million shares
- As the company failed to raise the total $7.1 million, Auking had withdrawn its acquisition agreement of the remaining 25 per cent interest in the Koongie Park JV and PGE rights across the Koongie Park tenure package
- Auking will host an AGM on May 31, that will include Resolution 8 which was seeking approval to issue certain shares to Astral Resources pursuant to the acquisition agreement
- AKN shares are down 4.55 per cent, trading at 10.5 cents as of 2:48 pm AEST
Auking Mining (AKN) has fallen short of its capital raise, triggering a withdrawal of its acquisition agreement with Astral Resources, formerly Anglo Australian Resources.
The company was short of $3.15 million in the form of 22.5 million shares.
In writing yesterday, Vert Capital had terminated the underwriting agreement in accordance with Clause 10 and based upon the occurrence of the following “Termination Events” as detailed in Clause 10.2.
Accordingly, Auking will not issue the shortfall shares but as disclosed in the offer prospectus, the company reserves the right to place any of the remaining shortfall shares at the same price of 14 cents per share for a three-month period after close of the offer.
As the company failed to raise the total $7.1 million, Auking had withdrawn its acquisition agreement of the remaining 25 per cent interest in the Koongie Park joint venture (JV) and platinum group element (PGE) rights across the Koongie Park tenure package.
Auking has confirmed that the existing Koongie Park JV agreement will continue to operate and regulate the conduct of activities at the Koongie Park copper-zinc project in WA.
Furthermore, Astral Resources will continue to hold 100 per cent of the PGE and gold rights with respect to the Koongie Park tenures.
However, this excludes the mining licences where Onedin and Sandiego are situated.
The company will host its Annual General Meeting on May 31, that will include Resolution 8 which was seeking approval to issue certain shares to Astral Resources pursuant to the
acquisition agreement.
AKN shares were down 4.55 per cent, trading at 10.5 cents as of 2:48 pm AEST.