AUS
NZ
UK
CA
USA
IND
Viking Mines Limited (ASX:VKA) is a Sydney, Australia based metal and mining company. VKA is engaged in developing and mining mineral deposits in the areas of West Africa. At the time of listing on ASX, the company had three advanced gold projects under its portfolio located in the Ashanti gold belt region of which one project had already been sold in 2015, and the company plans to sell the remaining two projects as well.
The company completely owned the Akoase Gold Project located in Ghana. It possessed 20.6 Mt at 1.2 g/t gold for 790,000 ozs of contained gold, at a 0.5 g/t gold cut-off as per the JORC report of September 2013. The company sold this project to Akoase Resources Limited (ARL) for US$10 million cash in June 2015.Â
The Berkh Uul Coal Project in Mongolia, fully owned by the company, consists of shallow high-quality bituminous coal resource of 38.3 Mt of which 21.4 Mt is classified as Indicated and 16.9 Mt classified as Inferred.
The Khonkhor Zag Coal Project in Mongolia is also completely owned by the company. It contains coal minerals the company secured the mining license over the project in April 2013, which will expire in 30 years.
On 3 October 2018, VKA had announced that it had signed a binding terms sheet with Altain Nuurs LLC (Altain) in order to sell its both the Mongolian assets, Berkh Uul Coal Project and Khonkhor Zag Coal Project, for US$1 million which was subject the due diligence to be conducted by Atlain. Atlain paid US$100,000 to VKA, and if Atlain decided not to continue its due diligence, VKA would refund US$50,000. Also, after the completion of due diligence, both the companies would negotiate and enter into a Share Purchase agreement whereby Atlain would pay the remaining US$900,000 to VKA. The target date for the completion of the transaction was proposed for January 2019.
Altain Nuurs LLC (Altain) is a metal and mining company based in Mongolia, with coking coal project in the southwestern Gobi Altai Province of Mongolia.
On 2 January 2019, Atlain proposed an extension of 30 days for the due diligence period to which VKA agreed and set the new target date for the completion of the transaction in February 2019.
Today, VKA announced that it had received a correspondence from the Altainâs agent. Atlain has now called off the offer and will not be proceeding with the transaction.
Although the sale of the assets was in line with the companyâs strategic objectives, it will continue to pursue opportunities to sell these assets and explore new investment opportunities in the future.
Looking at Viking Mines Limitedâs stock performance and the return it has posted over the last few months, the stock has generated a negative return of 52.00% during the past six months. It is currently trading at A$0.011 (as on 24 January 2019, 03:25 pm AEST) with a plunge of 8.33% in the price during the dayâs performance. The company has 313.72 million shares outstanding with a market cap of circa A$3.76 million. VKAâs 52-week high and low are marked at A$0.052 and A$0.010 respectively.
Disclaimer
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.
