AuKing Mining Ltd. has agreed to acquire a 100 per cent interest in the Machinga heavy rare earths project in Malawi, part of its overall plan to build a portfolio of critical minerals projects in the country.
Covering 200 square kilometres across two exploration licences, the Machinga project is situated approximately 40 kilometres east of Lindian Resources’ Kangankunde deposit in the Mesozoic Chilwa Alkaline Province.
Under the terms of the transaction, AuKing will acquire the asset from Tusker Minerals Ltd. for up to AU$4 million in staged consideration.
This comprises AU$2 million in total cash, including AU$750,000 on completion and $1.25 million within 12 months, alongside AU$750,000 in ordinary shares and AU$1.25 million in performance shares tied to a JORC resource milestone of 10 million tonnes at 0.65 per cent total rare earth oxides (TREO).
Machinga displays notable heavy rare earth enrichment, hosting an average heavy rare earth oxide (HREO) proportion of 28 to 30 per cent within hard-rock grades ranging from 0.6 per cent to 1.4 per cent TREO.
The mineralisation occurs near the surface, presenting potential for low-cost open-pit extraction alongside niobium as a valuable by-product.
Historical diamond and reverse-circulation drilling returned high-grade intercepts, including 15.1 metres at 1.01 per cent TREO with 27.7 per cent HREO from 23.9 metres.
AuKing Managing Director Paul Williams stated that the acquisition aligns with growing global demand for critical minerals, particularly dysprosium and terbium.
“With near-surface HREO results from 2023 drilling reported in the order of 30 per cent and bearing similar peralkaline geology, Machinga has the potential to become comparable to large North American deposits,” Williams said.
“Covering more than 200 square kilometres, Machinga has potential to become a district-scale rare earths project.”
Fully funded to initiate immediate field work, AuKing plans to integrate historical datasets with modern drone-based magnetic and LiDAR surveys to refine drill targets across the project area.
