PERTH (miningweekly.com) – Junior Viking Mines has inked a binding agreement with Flinders Mines to earn up to a 99% interest in the Canegrass battery minerals project, in Western Australia.
Under the terms of a farm-in agreement, Viking will acquire the majority interest in the project by spending A$4-million exploration over a 54-month period, and making staged cash payments totalling A$1.25-million to fellow listed Flinders Mines.
On Viking earning the 99% interest in the project, Flinders has the right to sell its remaining 1% interests to Viking in return for A$0.845-million of staked production and milestone-related payments due on production.
If Flinders does not exercise this right, the company must offer to sell the remaining interest to Viking on the same terms.
Additionally, a 2% net smelter royalty with Maximus Resources remains over three of the project tenements.
Viking MD and CEO Julian Woodcock told shareholders on Wednesday that the Canegrass battery minerals project farm-in represented a value accretive transaction for Viking Mines and its shareholders to invest in what is already a substantial vanadium resource.
“There is significant potential to add value through the discovery of both additional high-grade shallow vanadium resources which may be amenable to openpit mining and assess the project for its additional battery mineral potential with nickel, copper and cobalt credits. In addition to the focus on the existing resource base, the geology of the host Layered Igneous Complex is comparable to the Bushveld Complex in South Africa and has the potential to host platinum group elements which have had limited prior focus and will form part of our exploration strategy.
“I am excited that we have secured this project for Viking Mines and see potential to add substantial value to Viking and its shareholders through a targeted exploration and resource development programme,” says Woodcock.
The Canegrass project is currently estimated to host an inferred resource of 79-million tonnes at 0.64% vanadium pentoxide, 29.7% iron and 6% titanium dioxide.