Viking Mines (ASX:VKA) has entered into a drill-for-equity deal with privately held Topdrill, whereby invoiced drilling costs may be satisfied via issuing shares.
Under the agreement, Viking has the option to issue Topdrill up to 25 million shares for up to 40% of invoiced drilling costs at the Riverina East Project in Western Australia. The invoiced drilling costs cannot exceed $1 million.
Issuance of the 25 million shares will result in Topdrill holding a 1.88% stake in Viking. The offset value will be calculated as a 10% discount to the 20-day volume weighted average price multiplied by the number of shares issued to Topdrill.
The agreement will expire at the end of October this year.
CEO Julian Woodcock says the agreement with Topdrill enables Viking to preserve its balance sheet and allow for a larger drilling program to be conducted this year. Woodcock says the company is eagerly anticipating the first batch of assay results from the phase two drilling program at Riverina East.
The results are expected to be returned between late April and early May 2025.
The Riverina East Project, formerly known as the First Hit Project, is centred around the historical First Hit Gold Mine which sits along the Ida and Zuleika Shear zones in the Eastern Goldfields region of Western Australia.
Riverina East covers 479.9km2 and comprises seven mining and prospecting licences, five exploration licences and three licences under application.
Viking Mines is a gold and critical minerals explorer and developer focused on its assets within Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Viking Mines
