Viking Ashanti (ASX:VKA) has entered into a binding Heads of Agreement with emerging coal developer Auminco Mines to merge with Auminco in a share exchange transaction.
Viking proposes to acquire 100% of Auminco via issue of Viking shares and options on the basis that Auminco shareholders will hold 59% of enlarged entity, prior to a planned capital raising.
Viking will also issue 3,000,000 unlisted options to Auminco option holders, exercisable at $0.20 on or before 15 November 2016.
A minimum capital raising of $4.5 million is planned for the consolidated company in early 2014 to fund operations.
This will be a transformational transaction for Viking, acquiring near term production assets with potential to deliver sustainable cash flows with substantial exploration upside.
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