Viking Ashanti (ASX: VKA) is raising up to A$415,000 to fund evaluation of a potential corporate transaction that would expand its Ghanaian gold portfolio.
The company had in February entered into a non-binding Heads of Agreement and Exclusivity Agreement with a third party whose projects have a clear operational synergies with its existing Ghana asset portfolio.
Viking is already heading towards a Resource base of over 1 million gold ounces in Ghana as it continues to identify prospective gold targets at its Akoase project.
The funds, which will also be used for general working capital, will be raised through a placement of up to 8.3 million shares at $0.05 each to professional and sophisticated investors. The placement was managed by Emerald Partners.
This placement increases the total issued capital of Viking to 90.15 million shares and 22.7 million options exercisable at $0.18 on or before 31 August 2014.
Akoase Gold Project
Viking already holds an established Inferred Resource of 704,000 ounces of contained gold at a 0.5 grams per tonne cut-off at the Akoase East deposit of its most advanced project, the wholly-owned Akosae gold project.
This is poised to increase substantially with positive early results from spaced, shallow drilling at the Andy Hills and Dave Flats prospects of the Kadewaso structural trend supporting the probability of additional resources being defined.
About 6 kilometres of the 11 kilometre trend, which hosts the Akoase East deposit, has been drill tested to 120 metres below surface to date.
The remaining 5 kilometres has been deemed as warranting detailed and systematic evaluation.
Two drilling campaigns conducted at the Alimac prospect in April-May and October-November last year have also successfully extended the Akoase East deposit for a further 700 metres immediately northeast of the current resource.
Viking is confident that infill drilling will lead to a significant increase in the Akoase East resource.
Akoase East remains open for further expansion at depth and to the northeast.
Viking Ashanti is targeting a plus-1 million ounce gold resource at Akoase, which is located close to major mining projects including Newmont Mining’s 8.7 million ounce Akyem deposit and the Kwabeng gold mine.
This is further supported by Ghana’s status as a significant gold producer with 3 million ounces produced in 2011, its 25 year history of modern mining and relatively low sovereign risk.
Akoase East ore is free milling which should provide for recoveries of 85% to 95%.
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