Newly Mongolian focused Viking Ashanti (ASX: VKA) is a step closer to acquiring unlisted Auminco Mines Limited, owner of a package of advanced coal assets after lodging a Bidder’s Statement with ASIC today.
The bid is a friendly, off-market takeover offer of Auminco, which had been advancing one thermal coal project in Mongolia that is capable of being progressed into production within the next 12 – 18 months.
Auminco's strategy was to discover and develop high quality coal deposits targeting locations close to established mining operations or defined deposits and supported by existing or developing infrastructure.
The Berkh Uul project ticks that box.
It also has a CAPEX that will be low by most standards; a start-up mining rate that will be not be large, with flexibility to build over time with a simple mining and processing, and with a simple and proven technology.
A Mining Lease application is also imminent for Berkh Uul.
Auminco shareholders will emerge with a 47% stake in Viking after Viking's takeover offer which is significant as Auminco was established by founding shareholders and management of Coalworks Limited that was sold to Whitehaven Coal (ASX: WHC) for ~$200 million in mid-2012.
So they have form and history of achieving value accretion for investors.
Viking still owns its West African gold assets; Akoase East currently hosts a JORC resource of 790,000 ounces of gold.