Viking Mines Ltd. has agreed to divest its non-core core First Hit Gold Project in Western Australia’s Eastern Goldfields to First Au Ltd. as it looks to prioritise its US tungsten portfolio.
The transaction is valued at up to AU$5 million and will give Viking an immediate financial boost while retaining long-term upside.
Viking will receive an upfront consideration of AU$2.2 million, consisting of AU$1.2 million in cash and AU$1 million in First AU shares.
An additional AU$2.8 million will be accessible via performance rights, which progressively convert to shares over five years as First Au hits specific drilling intercepts and grows formal mineral resource milestones on the 12 tenements.
As part of the agreement, First Au has also committed to a minimum AU$500,000 drilling program on the tenure within the first 12 months, funding ongoing gold exploration at zero cost to Viking shareholders.
Viking Mines CEO Julian Woodcock said the transaction perfectly serves the company’s revised focus.
“This transaction does two things at once. It crystallises value from a quality gold asset that is no longer core to our strategy, and it does so in a way that keeps our shareholders exposed to its upside as FirstAu takes it forward,” Woodcock said.
“First Hit deserves a dedicated owner, and that owner is now committed to drilling it, at no cost to us.”
The divestment repositions Viking as a dedicated critical minerals developer focused on its flagship Linka tungsten project in Nevada, US.
Linka represents a rare, fully drill-permitted project arriving at a time when the US is aggressively seeking non-allied domestic supply chains.
“Our priority is Linka, where we are fully permitted, contracted and weeks away from the first drilling in over four decades.
“This deal strengthens our balance sheet and lets us put our full attention behind a US tungsten project arriving at exactly the right moment in the market,” Woodcock added.
Viking has already secured US Bureau of Land Management approval and contracted a drilling team for a maiden 63-hole campaign.
The rig is anticipated to mobilise immediately following the 4th of July holidays, with drilling slated to begin by mid-July.
The completion of the deal is subject to certain conditions and is expected to occur in the coming weeks.
