Viking Mines Expands First Hit Gold Drilling Program with New Funding
VKA (VKA) Share Update November 2024 Sunday 17th
Viking Mines Expands Gold Drilling Program with New Funding
Viking Mines Limited (ASX: VKA) has announced a significant expansion of its First Hit Gold Project drilling program, backed by new funding raised through a placement to sophisticated and professional investors.
Instant Summary:
- Viking Mines raises A$2.39 million through a new share placement.
- Drilling program expanded fourfold to 20,000 meters.
- Focus on high-priority targets along the Zuleika Shear greenstone belt.
- Exploration campaign fully funded with A$5 million in cash reserves.
- Proximity to multiple operating mills and major gold camps.
Funding and Expansion
Viking Mines Limited has successfully raised approximately A$2.39 million through a placement of fully paid ordinary shares to sophisticated and professional investors. This funding boosts the company's cash reserves to around A$5 million, enabling a significant expansion of its drilling program at the First Hit Gold Project in Western Australia.
The expanded drilling program will now cover up to 20,000 meters, a fourfold increase from the initial plan. This expansion aims to test high-priority targets along a 25-kilometer stretch of the Zuleika Shear, a greenstone belt known for its high-grade gold potential.
Strategic Goals and Regional Context
The First Hit Gold Project is located in a prolific gold district, adjacent to major gold camps such as Riverina-Mulline and Central Davyhurst, both operated by Ora Banda Mining. The project area includes a substantial land package of approximately 480 square kilometers, with a 25-kilometer strike length along the Zuleika Shear.
Viking's strategy focuses on unlocking the potential of its high-grade gold assets by targeting zones with minimal modern exploration. The company plans to complete the initial 5,000 meters of drilling by the end of the December quarter, with further drilling to follow in Q1 2025.
Placement Details and Market Context
The placement involved the issuance of approximately 265 million new shares at A$0.009 per share, representing an 18.2% discount to the last traded price. Euroz Hartleys Limited acted as the lead manager for the placement. The new shares are expected to begin normal trading on the ASX by 26 November 2024.
The successful funding and expansion of the drilling program position Viking Mines to capitalize on the robust global gold market. This development could enhance the company's valuation as it explores high-grade targets in a well-endowed gold district. The proximity to existing gold processing facilities also adds strategic value.
Investor Reaction:
Analysts may view the expansion positively, given the strong support from investors and the potential for significant gold discoveries. However, the discounted share placement could lead to some short-term volatility in the stock price.
Conclusion:
Investors should watch for upcoming drilling results and updates on the First Hit Gold Project. Viking Mines' strategic focus on high-grade targets could yield substantial returns if successful. Staying informed about the company's progress will be key for investors looking to capitalize on this opportunity.