AuKing Mining has signed a memorandum of understanding (MOU) with Barg Alsaman Mining Company (BSMC), a subsidiary of Segia Gulf Group, to jointly explore and develop mineral projects in Saudi Arabia.

The collaboration will concentrate on gold, copper, silver and zinc projects, with BSMC aiding AuKing in obtaining a Foreign Investment Licence from the Saudi Investment Ministry.

Segia Gulf Group managing director Sheikh Abdullah Al-Qahtani said: “The kingdom of Saudi Arabia is focusing substantial resources to expand our mining industry and to provide a basis for developing mining projects and providing significant opportunities to increase skills and expertise of local Saudis in this sector.

“The reputation of Australian explorers is first class and we look forward to working with AuKing’s technical team as we seek to identify and develop suitable mining projects.”

Under the MOU, BSMC will provide AuKing with opportunities to participate in existing projects and jointly bid for new government-offered opportunities.

AuKing is set to solely fund exploration and development activities up to the completion of a feasibility study, after which it will gain a 70% stake in the project.

If a designated mining project is sold before the feasibility study is completed, the proceeds will be shared between BSMC and AuKing on a 30/70 basis.

Furthermore, BSMC committed to helping AuKing garner funds for project activities, ensuring both parties benefit from the partnership's success.

AuKing chairman Asimwe Kabunga said: “The Board of AuKing is pleased to announce the collaboration with Segia Gulf Group (via its subsidiary BSMC), a substantial Saudi Arabian corporation, for the specific purpose of exploring and developing mineral projects in the kingdom of Saudi Arabia.

“There is little doubt that the Government of Saudi Arabia has a serious agenda to create a mining sector that attracts global attention and participation and already has many of the major mining players involved.”