Australian Securities Exchange (ASX)-listed AuKing Mining, in partnership with Saudi Arabian company BSMC, has been awarded the Shaib Marqan exploration licence as part of Saudi Arabia's sixth licensing round.
The Shaib Marqan licence area, covering 91.8km², is located in central Saudi Arabia, approximately 240km south-west of Riyadh.
It falls within the mineral-rich Ar Rayn Terrane, part of the Arabian-Nubian Shield, known for various mineral systems.
AuKing has noted at least 22 ancient mining sites within the licence area, with gold samples averaging 5.8 grams per tonne.
As per the terms of the bid, AuKing and BSMC have committed to a minimum exploration investment of $1.2m. The proposed activities are contingent on the successful exploration outcomes.
The partnership outlines a focus on gold, copper, silver and zinc projects, with AuKing solely funding exploration and development up to the feasibility study.
The equity interest will be split 70:30 between AuKing and BSMC, respectively.
BSMC will support AuKing with local administration, logistics and fundraising for the project activities in Saudi Arabia.
The collaboration is aligned with Saudi Arabia's Vision 2030, which aims to diversify the economy and enhance the mining sector's contribution, reducing reliance on oil revenues.
Minerals play a crucial role in achieving Vision 2030 goals, including the green transition and technological advancements.
The ongoing discussions are expected to finalise the terms of the exploration licence granted by the ministry for the Shaib Marqan project in the coming weeks.
This development is expected to help Saudi Arabia diversify its economy and elevate the mining sector's role in line with its Vision 2030 reform agenda.
AuKing managing director Paul Williams said: “AuKing is very pleased to have secured the Shaib Marqan exploration licence with its local partner BSMC.
“We understand that this 6th Bidding Round has been the subject of significant interest from companies around the world and it is an honour to be recognised by the Ministry with this successful bid.
“Shaib Marqan is situated in a highly mineralised area within the famous Arabian-Nubian Shield geological region and is situated within close proximity to various established deposits. Systematic exploration across the licence area could lead to the rapid identification of a significant mineral deposit within the Ar Rayn Terrane.”
In July this year, AuKing Mining secured an option to acquire North American Exploration, owner of the Myoff Creek Project in British Columbia, Canada.
