Viking Mines sells gold project in Australia to focus on tungsten in the US
ASX-listed Viking Mines has entered into a binding agreement with fellow-listed First Au to dispose of its 12 tenements comprising the First Hit gold project, in Western Australia, for $1.2-million in cash, $1-million worth of First Au shares and up to $2.8-million in performance rights.
Of the up to $5-million consideration, $2.2-million is upfront and $2.8-million is contingent.
The divestment crystallises value from a noncore gold asset and allows Viking to direct its capital and technical resources towards its flagship Linka tungsten project in Nevada, US, where a maiden reverse circulation drilling campaign is scheduled to start in coming weeks.
Importantly, Viking retains meaningful exposure to the future value of the project through the equity and performance-linked components of the consideration, allowing shareholders to continue to benefit from exploration success under First Au’s dedicated ownership.
Viking Mines MD and CEO Julian Woodcock comments that the transaction does two things at once: "it crystallises value from a quality gold asset that is no longer core to our strategy, and it does so in a way that keeps our shareholders exposed to its upside as First Au takes it forward. First Hit deserves a dedicated owner, and that owner is now committed to drilling it, at no cost to us.
“For Viking, it sharpens an already clear focus. Our priority is Linka, where we are fully permitted, contracted and weeks away from the first drilling in over four decades. This deal strengthens our balance sheet and lets us put our full attention behind a US tungsten project arriving at exactly the right moment in the market.”
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