Viking Mines (ASX: VKA) Eyes Expanded Drilling at First Hit with New Funding

Highlights

• Viking Mines received commitments to raise AU$2.39 million through a share placement.
• The placement is expected to boost Viking's cash reserves to approximately AU$5 million, supporting ongoing exploration activities.
• Viking is expanding the Reverse Circulation (RC) drilling program at First Hit Gold project to 20,000m of drilling.

Viking Mines Limited (ASX:VKA) has secured binding commitments from sophisticated and professional investors to raise approximately AU$2.39 million (before costs) through a placement of fully paid ordinary shares.

The proceeds from the placement will strengthen Viking's cash reserves, increasing the total to around AU$5 million, which will support ongoing exploration activities. As part of this, the company is expanding its drilling program at the First Hit Gold project, now targeting up to 20,000m of Reverse Circulation (RC) drilling.

The placement comprises the issue of approximately 265 million new fully paid ordinary shares at an issue price of AU$0.009 per share, raising approximately AU$2.39 million (before costs).

Commenting on the capital raise, Viking Mines Managing Director & CEO Julian Woodcock, said: “We have a substantial land package in the right geological setting with multiple priority targets that warrant testing. The region is host to multiple major high-grade gold deposits and our tenure encompasses and adjoins the greenstone belt which hosts the >1.3Moz Riverina Camp and is directly along strike from the >1.2Moz Central Davyhurst Camp, both held by Ora Banda Mining. With multiple gold exploration work streams now underway, we look forward to providing updates on both the First Hit Gold Mine mineral resource potential assessment and the initial drilling program across high-priority regional targets in the near future.”

The company emphasised its enhanced focus on exploring the untapped potential of unexplored greenstone areas adjoining the >1.3Moz Riverina-Mulline Gold Camp, with a specific focus on targeting high-grade gold deposits.

The project is strategically located near multiple operating mills, with Ora Banda Mining’s (ASX: OBM) underground Riverina mine just 8km to the east and the Davyhurst operations 40km to the south of Viking’s First Hit Gold Mine.

The initial ~5,000m phase of the drilling program is expected to be completed by the end of the December quarter. This phase will focus on testing open targets near the First Hit Mine and conducting first-pass drilling at high-priority zones along a 25km stretch of the Zuleika Shear, a well-known structural belt with a history of significant high-grade gold deposits.

The company plans to resume drilling in Q1 2025, once the initial results are received, and will follow up on additional targets. The expanded 20,000m program aims to test priority zones, expand the exploration footprint, and generate value through new discoveries of high-grade gold resources.

The share price of VKA was AU$0.011 at the time of writing on 18 November 2024.