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Highlights
- Viking Mines is divesting its non-core First Hit Gold Project in Western Australia to First Au Limited for up to AUD 5 million.
- The deal includes AUD 1.2 million cash, AUD 1.0 million in First Au shares, and up to AUD 2.8 million in milestone-based performance rights.
- Milestones are tied to exploration success, including drill results and mineral resource thresholds of 25,000 to 100,000 ounces gold.
- The structure allows Viking to retain upside exposure while removing funding and operational responsibilities for the project.
- Proceeds support a strategic shift toward the Linka Tungsten Project in Nevada, with drilling set to begin in mid-July.
Viking Mines Limited (ASX:VKA) (OTCID:VKALF) has moved to reshape its asset portfolio through the divestment of its non-core First Hit Gold Project in Western Australia. Under binding agreements with ASX-listed First Au Limited, the company will transfer 12 tenements encompassing First Hit Gold Project in a deal valued at up to AUD 5 million , comprising cash, equity, and milestone-linked consideration. The transaction supports Viking’s ongoing transition toward its flagship Linka Tungsten Project in Nevada, USA , where a maiden drilling programme is set to commence in the coming weeks.
Transaction Overview
The agreement covers the sale of 12 tenements associated with the First Hit Gold Project in the Eastern Goldfields of Western Australia. Under the terms, Viking will receive AUD 1.2 million in cash and AUD 1.0 million in FAU shares upon completion .
An additional up to AUD 2.8 million in FAU performance rights is structured across defined milestones, including drilling results and Mineral Resource thresholds ranging from 25,000 ounces to 100,000 ounces .
Details of Milestone-Linked Consideration
Upon achievement of each performance right milestone by First Au within five years from completion, VKA will receive AUD 700,000 worth of FAU shares, calculated using the lower of FAU’s 15-day VWAP prior to execution or a price of $0.01 per share. The milestones include:
- A drill intercept achieving 40 grammetres (grade × thickness)
- A 25,000-ounce Mineral Resource at a 0.5 g/t cut-off
- A 75,000-ounce Mineral Resource at a 0.5 g/t cut-off
- A 100,000-ounce Mineral Resource at a 0.5 g/t cut-off
The structure enables VKA to maintain exposure to the First Hit Project under First Au ownership through a retained equity interest, with potential for expansion upon achievement of performance milestones. The arrangement removes Viking from the funding and operational responsibilities associated with the asset while preserving participation in future outcomes. In addition, FAU’s minimum AUD 500,000 drilling commitment ensures continued exploration activity at no additional cost to Viking shareholders.
Strategic Focus — Transition Toward Tungsten Development
The divestment enables Viking to direct resources toward its critical minerals portfolio , particularly the Linka Tungsten Project in Nevada, USA . The project has received the US Bureau of Land Management approval for a 63-hole reverse circulation drilling programme , marking the first subsurface testing at the site in more than four decades.
Drilling, contracted to DrilCor , is planned to begin shortly following final preparatory work. Rig is expected to be mobilised in early July, and drilling is expected to begin by mid-July.
VKA shares were trading at AUD 0.010 per share at the time of writing on 29 June 2026.
