Viking to use US$3m intercompany loan repayment for First Hit exploration
Viking has received a US$3m payment before transfer fees from its subsidiary company in Ghana as repayment of intercompany loans.
This comes after Resolute Amansie received a US$3m payment from one of the defendants involved in the company’s ongoing litigation over the unpaid proceeds arising from the sale of the Akoase gold project.
While this amount does not include the costs and outstanding interest along with an ongoing royalty on production that Viking Mines (ASX:VKA) is seeking, the company remains confident of a successful outcome.
The judgement hearing by the Ghana High Court is scheduled to take place on 18 October.
“These funds will further strengthen our already strong cash position and allow us to focus our exploration activity on our primary project at First Hit,” managing director Julian Woodcock said.
“We will continue to support Resolute Amansie Limited to pursue the additional funds we believe are owed as costs and interest from the litigation against BXC Company Ghana Ltd and eagerly await the judgement in October 2021.”
The company added that payment from Resolute Amansie does not cover the full amount of intercompany loans that it had made to its subsidiary.
Visible gold was observed in one of the recent step-out holes that Viking had drilled about 165m north of historical underground workings at the First Hit gold mine in Western Australia’s Goldfields region.
This confirmed that the structures hosting the First Hit mineralisation contained gold beyond the previously defined limits of mineralisation.
Work is currently underway that will help the company define follow-up targets.
This article was developed in collaboration with Viking Mines, 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.