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Mining

Viking Mines banks US$2M from Ghana gold asset sale

Viking Mines (ASX:VKA) has banked a very handy US$2 million as part of the sale proceeds for its Akoase gold project in Ghana.

Transfer of the licenses to the buyer of the West African project will commence and the $2 million proceeds are non-refundable.

Government approvals are expected in due course.

However, there are further cash proceeds to flow to Viking of US$6 million once Ministerial approvals for the transfer of the tenements are received.

A further US$2,000,000 is payable to Viking from the vendors upon gold production at the project via a gold royalty.

Viking will soon kick off reconnaissance drilling at its West Star/Blue River gold project in Ghana, testing a gold in soil anomaly.

The company is looking at project farm-in/acquisition opportunities, particularly those with near term production potential.

The significant incoming cash inflows are against a market cap of just $2.75 million inidcating the company will trade under cash backing.

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