- Viking Mines (VKA) is set to earn a 99-per-cent interest in the Canegrass battery minerals project in Western Australia
- The company has entered a farm-in arrangement with Flinders Mines (FMS) to acquire a majority stake in the project, which it believes has “significant potential to add value”
- Viking Mines needs to spend $4 million on exploration over 54 months and will also have to make staged payments totalling $1.25 million in cash
- The company is now undertaking comprehensive activities to better understand the project and plan future exploration
- Viking shares are up 11.1 per cent to trade at one cent at 3:59 pm AEDT, and Flinders shares are down 9.8 per cent to trade at 46 cents
Viking Mines (VKA) subsidiary Viking Critical Minerals is set to acquire an equity stake in the Canegrass battery minerals project in Western Australia.
The company has entered a farm-in with ASX-listed Flinders Mines’ (FMS) subsidiary, Flinders Canegrass, to earn up to 99 per cent of the six tenements within the Canegrass project.
To do this, Viking needs to spend $4 million on exploration over 54 months, as well as pay Flinders up to $1.25 million in cash over four stages.
If and when Viking earns a 99 per cent interest in the project, Flinders may sell its remaining one per cent stake to Viking in return for $845,000 in production and milestone-related payments due on production.
Canegrass’ primary commodity is vanadium, but it has also shown potential for nickel, copper, cobalt, platinum group elements (PGEs) and gold.
Viking’s Managing Director and CEO, Julian Woodcock, said he believed the Canegrass project had “major potential” to add company and shareholder value.
“There is significant potential to add value through the discovery of both additional high-grade shallow vanadium resources, which may be amenable to open-pit mining and assess the project for its additional battery mineral potential with nickel, copper and cobalt credits,” Mr Woodcock said.
“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 PGEs, which have had limited prior focus and will form part of our exploration strategy.”
Under the first stage of the earn-in deal, Viking will undertake comprehensive programs so it can decide whether to proceed to the second stage of the agreement. This work will include survey and drill planning, discussions, reviewing historical data, and another field visit before the end of the year.
Viking shares were up 11.1 per cent to trade at one cent at 3:59 pm AEDT, and Flinders shares were down 9.8 per cent to trade at 46 cents.