- Viking has earned a 25% interest in the Canegrass Battery Minerals Project after completing stage 1 of the Farm-in Agreement (FIA)
- The Company has decided to proceed with stage 2 of the FIA to earn an additional 24% interest in the project.
- As of 31 July 2023, AU$1.28 million has been spent on the project.
Australian Company Viking Mines Limited (ASX: VKA) has earned a 25% equity stake in the Canegrass Battery Minerals Project, located in the Murchison Region of Western Australia. The development follows the completion of stage 1 of the farm-in agreement with a subsidiary of Red Hawk Mining Limited (ASX: RHK).
Data source: Company update
Stage 1 included AU$1 million exploration expenditure towards the project within 18 months of commencement of the agreement.
With the completion of stage 1, Viking has elected to proceed with stage 2 of the agreement, with which the Company will earn an additional 24% stake in the project. Stage 2 involves further exploration expenditure of AU$1 million in the next 12 months, taking the total expenditure to AU$2 million.
The schedule and the status of the farm-in agreement are provided in the table below –
Image source: Company update
Viking informed that as of 31 July 2023, it had spent AU$1.28 million on the project and is required to spend an additional AU$0.72 million within a year to complete stage 2 of the agreement and earn an additional 24% interest in the project.
Viking is awaiting drill assays and assessing the drill results to complete the interpretation of the Vanadiferous Titanomagnetite horizon.
The Company is seeking an external consultant to conduct resource modelling to generate an updated JORC (2012) MRE for the project.
In addition, the Company is continuously evaluating opportunities for processing options to increase value via recovering further products from the mineralisation.
VKA shares traded at AU$0.011 on 17 August 2023 with a market capitalisation of AU$11.27 million.