Viking Mines set for $4 million capital raise from oversubscribed placement
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A commitment of capital raising will extend the Viking Mines’ Phase 1 drill programme of First Hit Project before commencing Phase 2.
A total of 111,111,111 ordinary shares were set to be issued at a price of $0.036 per share in an oversubscribed placement. The gold-focused company was confident of reaching the expected $4 million raising based on firm and binding commitments from sophisticated and professional investors.
Viking Mines Limited (ASX: VKA) planned to utilise the fresh influx of funds to extend the Phase 1 drill programme and commence the Phase 2 drill programme at First Hit, as well as general working capital.
Viking CEO Julian Woodcock remarked: “The appetite from investors to take part in our capital raising has been very encouraging. Viking have made significant progress since the acquisition of the project at the end of January with the Phase 1 drilling programme well advanced.
“The proceeds from the raise will allow us to immediately commence with priority holes in the Phase 2 drilling programme to test for extensions of the First Hit system using the knowledge we have recently acquired.”
It is anticipated that the share issue will occur on or around April 21, 2021.
Located 150km north-west of Kalgoorlie, the First Hit Project is centred around the historic high-grade First Hit gold mine situated along the prospective Ida and Zuleika shear gold zones of the Eastern Goldfields.
No modern exploration activity has been conducted in the past 18 years since the closure of the First Hit gold mine by Barra Resources in 2002. Viking consider the region a significant opportunity and are intent on delivering exploration programmes to test near mine extensions and regional targets with the objective of defining fertile structures and discovering gold ounces.
Rapid advancement and exploration is currently being undertaken to explore, discover and develop gold ounces. Viking expect this aggressive exploration strategy to generate shareholder value through the finding of new gold discoveries.
Examples of high-grade mineralisation previously drilled at First Hit, prior to its closure in 2002 include:
The Project area is well serviced by infrastructure and is located 50km west of the sealed Goldfields highway and the township of Menzies. The nearest operating gold processing plant is the Davyhurst Mill 50km to the south, owned and operated by Ora Banda Mining (ASX:OBM).
The nearest operating gold mine is the Riverina open pit, located 8km south of the First Hit gold mine, also owned by OBM.
This article was developed in collaboration with Viking Mines Limited, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.