Tusker Minerals agrees $4M Machinga Project divestment

• Tusker Minerals (ASX:TSK) has executed a binding agreement to sell its Machinga Project to AuKing Mining (ASX:AKN) for up to $4 million.
• The transaction delivers non-dilutive funding through staged cash, equity, and performance shares.
• Proceeds will be redirected towards core rutile and heavy mineral sands assets in Cameroon and Malawi.

Tusker Minerals (ASX:TSK) has agreed to sell its Machinga Rare Earth Elements Project to AuKing Mining (ASX:AKN) for up to $4 million.

The non-dilutive transaction allows the company to strengthen its balance sheet and fund planned exploration programmes.

"This proposed transaction builds on the successful divestment of our Tundulu project and reflects our disciplined approach to capital allocation and portfolio optimisation," said Tusker Minerals CEO Cliff Fitzhenry.

The total consideration includes staged cash, equity, and performance shares for the licences located in southern Malawi.

Following the announcement, the share prices of Tusker Minerals and AuKing Mining stood at $0.080 and $0.021, respectively.

Capital from the transaction will be redirected to core rutile and heavy mineral sands portfolio assets in Cameroon and Malawi.

Tusker stated that it will retain exposure to rare earth markets through an ongoing equity position in AuKing.