Viking Mines (ASX:VKA) Acquires Nevada Tungsten Portfolio in Strategic US Expansion

Highlights

• VKA shares jumped 35.71% following the announcement of a US tungsten portfolio acquisition.
• The company entered a binding Terms Sheet to acquire six tungsten projects in Nevada with total past production of approximately 123,000 tonnes at 0.54% WO₃.
• American Tungsten Corp will invest AUD 750,000 via a strategic placement and provide in-country technical services.
• The flagship Linka Project hosts multiple high-grade historical intercepts and a proven production history.
• Tungsten is a US-designated critical mineral, offering potential access to government funding and strategic growth amid rising global tungsten prices.

Viking Mines Ltd (ASX:VKA) shares climbed 35.71% to AUD 0.009 on Tuesday morning after the company announced it had entered into a binding Terms Sheet with US-based BLK Group LLC to acquire 100% of a USA portfolio of six tungsten projects in the Tier-1 mining jurisdiction of Nevada. The acquisition provides an opportunity to delineate a significant critical mineral resource, with potential avenues to access US government funding.

The transaction has received significant backing through an AUD 750,000 strategic investment from American Tungsten Corp (CSE:TUNG) (FRA:RK90), which will become a substantial shareholder via a placement, alongside binding commitments to raise approximately AUD 4.295 million before costs through the placement.

Nevada Tungsten Portfolio Overview

The USA Projects comprise six tungsten assets—Linka, Alpine, Long, Terrell, Ragged, and Victory—four of which have recorded tungsten production through both open-pit and underground mining during the 20th century. Collectively, historical production totalled approximately 123,000 tonnes grading 0.54% tungsten oxide (WO₃).

Viking has commenced due diligence activities and recently completed an on-ground field visit in Nevada. This included sampling and claim verification ahead of planned detailed sampling campaigns.

Linka Project Anchors the Portfolio

The flagship Linka Project features notable historical results, including underground channel sampling of 6.1m at 1.50% WO₃, 6.1m at 0.96% WO₃, 6.1m at 0.84% WO₃ and 1.5m at 2.11% WO₃ and a drill intercept of 10.1m at 0.79% WO₃ in drillhole DDH-8 from 39.6m.

The project hosts mineralisation across three historical mines distributed along an approximately 820m strike length, which remains open to the northeast and southwest, with extensions beneath shallow cover yet to be tested. The project also has a proven production history, having processed ore through a 360-tonne-per-day mill during 1955–56, with records indicating the extraction of high-grade stopes grading up to 3.0% WO₃.

Strategic Importance of Tungsten

Tungsten, designated as a US critical mineral, plays an essential role in defence, aerospace, and advanced manufacturing. The US currently has no domestic tungsten production and is fully reliant on imports, while China controls approximately 85% of global supply and has tightened export quotas.

Against this backdrop, tungsten prices rose sharply throughout 2025, reaching record levels of USD 780–820 per metric tonne unit of ammonium paratungstate (APT). The acquired assets present potential pathways for US government funding under initiatives such as the Defence Production Act.

Development Strategy and Next Steps

Viking’s development plan is centred on three pillars: resource definition through exploration, metallurgical testwork to refine processing pathways, and engagement with US government agencies to pursue funding opportunities. Immediate work programs include data compilation, sampling, target generation, and the commencement of drill permitting.

Transaction Structure and Funding

The acquisition is structured as a staged purchase over seven years, with total consideration of USD 2.88 million and limited upfront payments. Viking may accelerate payments or withdraw at any stage prior to completion. Vendors will retain a 2% net smelter return, reducible to 1% for USD 2 million.

The transaction is supported by binding commitments to raise approximately AUD 4.29 million via a placement, including a AUD 750,000 strategic investment from American Tungsten Corp.

Proceeds from capital raise will be directed towards –

• US Projects: Funding exploration activities across the six US-based tungsten projects acquired from BLK Group LLC, as well as existing assets in Western Australia.
• Corporate: Use of proceeds for project-related payments, business development initiatives, general working capital, and placement-related costs.