Viking Ashanti (ASX: VKA) has added A$415,000 to its cash reserves with the completion of a placement to professional and sophisticated investors.
The placement, which was managed by Emerald Partners, offered 8.3 million shares at $0.05 each to raise the funds.
Viking Ashanti will use the money to evaluate a potential corporate transaction and for general working capital purposes.
In February the company entered into a non-binding heads of agreement and exclusivity agreement with a third party in relation to a potential corporate transaction.
The third party has projects in Ghana that have clear operational synergies with Viking’s existing asset portfolio.
During the exclusivity period, due diligence will be completed and definitive agreements are expected to be negotiated.
1Moz Resource base
Viking Ashanti is working to build its Resource base in Ghana to over 1 million gold ounces as it continues to identify prospective gold targets at its Akoase project.
The project is located in the northeastern end of the Ashanti Gold Belt in southern Ghana.
It hosts an established near surface Inferred Resource of 704,000 ounces of contained gold at the Akoase East deposit.
Viking Ashanti has completed 8,000 metres of reverse circulation drilling and 3,000 metres of diamond drilling at Akoase since acquisition.
Drilling is continuing to the northeast and at depth to extend the known mineralised zones.
Viking Ashanti’s other major area of interest is the West Star/Blue River project, located adjacent to Adamus’ 2 million ounce Nzema gold mine at the southwestern end of the Ashanti Gold Belt.
Viking has 100% interest in the hard rock rights of the licences.
Extensive soil geochemistry and drilling programs have been completed, identifying 17 strike kilometres of the Salman shear zone as a prime exploration target.
Total issued capital
The Total issued capital of Viking Ashanti following the completion of the placement is 90,150,580 ordinary shares and 22,683,913 options exercisable at $0.18 on or before 31 August 2014.
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