A company driving the planned restart of gold processing operations in the Cloncurry area and at Tick Hill has taken a significant step to secure more than $40 million.

Orion Resources has signed a nonbinding indicative term sheet with a North American firm for $US25 million project financing.

ASX-listed AuKing Mining announced the progress.

AuKing is working in partnership with Orion on plans to re-establish mining and processing operations at a parcel of former Tombola Gold assets being acquired in the Cloncurry area.

These include the Lorena carbon-in-leach gold processing plant and the Mount Freda and Golden Mile package of exploration and mining tenements.

AuKing Mining and Orion Resources have also signed a joint venture term sheet with Tick Hill Mining.

This aims to establish a processing operation at Tick Hill, 120km south-east of Mount Isa, based on existing tailings stockpiles and may extend to a restart of mining at the historical open pit.

AuKing managing director Paul Williams said Orion’s signing of the nonbinding indicative financing was a significant milestone as it sought to complete the acquisition of the Cloncurry Gold Project assets and progress to early gold production.

Formal due diligence, asset valuation and suitable documentation (as required by the financier) must be satisfied before binding financial commitments commence.

AuKing said the financier required its details to remain confidential while the conditions were being satisfied.

AuKing has the right to acquire 50 per cent of the shares in Orion through expenditure of $5 million on the Cloncurry Gold Project by June 30, 2027.