Viking Mines dukes it out with ASX over $US500,000 payment

A war of words has erupted between Viking Mines and the ASX over the disclosure of a US$500,000 ($642,000) payment from the sale of its Akoase gold project in Ghana, West Africa.

Viking (ASX:VKA) first announced the Akoase sale for $US 10 million to Akroma Gold — the owner of the Sian gold project near Akoase — in June 2015 .

The $10 million payment was to be made in instalments. A revised payment schedule for the remaining $6 million was agreed in May this year.

In an update in August, Viking said it had so far received $4.5 million with a further $500,000 payment to be made shortly as the purchaser’s local bank completed conversion of the local Ghanaian currency into US dollars.

In its 2017 annual report, Viking revealed it had now received $5 million, but did not disclose the $500,000 payment.

ASX questioned Viking over when it had received the $500,000 payment and whether the company thought the payment would have a material effect on its shares.

Viking said it didn’t believe the payment was new, materially price sensitive information. It had already disclosed it expected the money to be received shortly after making its way through the Ghanaian banking system.

“It is clear from the gold sale update that the further $500,000 was expected to be received and the payment was being processed with the Ghanaian banking system. On this basis, the company does not consider that there was any doubt that payment would in fact be received, as was the case,” Viking said.

ASX also questioned the company over whether Viking executive chairman Jack Gardner obtained approval of the company’s board or from the managing director for his acquisition of Viking shares in late August.

In response, Viking said Mr Gardner had received prior approval.

The Akoase project is located 125km northwest of Accra in the Ashanti Gold Belt in Ghana. The Project comprises the Akoase East (inferred resource of 790,000 ounces), Akoase South-East and Akoase West licences. Akoase is 25km from Newmont’s 8 million ounce Akyem gold mine.

Viking was last trading unchanged at 2.5c capitalising the company at around $7.4 million.