Viking Mines (ASX:VKA) is set to acquire the privately held Flinders Canegrass, increasing its ownership to 100% of the Canegrass Battery Minerals Project in Western Australia.
Following completing stage two of the farm-in agreement, Viking Mines will purchase Flinders Canegrass — a subsidiary of Red Hawk Mining (ASX:RHK) — via a binding share sale agreement for a $175,000 cash consideration, 33.33 million shares in the company, and 15 million options exercisable at $0.02 with a three-year expiry date.
The new shares and options issued to Red Hawk will rank equally with existing Viking shares on issue.
CEO Julian Woodcock says having the entirety of the Canegrass Project under Viking’s direct ownership and control will be beneficial moving forward.
“The company believes there is significant upside potential for the Canegrass Project, with the vanadium sector continuing to grow through the adoption of vanadium redox flow batteries as a critical long-term energy storage solution for the growing renewable energy sector,” Woodcock says.
Viking Mines, which has a market capitalisation of $8.2 million, has undertaken a rapid and aggressive period of activity during the stage two farm in, which returned results that exceeded the company’s expectations.
A 7,500m reverse circulation drilling program was completed, with results returning widespread, thick, high-grade vanadium intersections including 42m @ 0.74% vanadium pentoxide, including 17m @ 0.80% vanadium pentoxide, and 27m @ 0.83% vanadium pentoxide.
Woodcock adds that the project has continuously exceeded expectations as the company completed extensive technical advancements throughout stage one and two of the farm in.
“Highlights include a substantial Mineral Resource Estimate upgrade, which in turn delivered a highly prospective pit optimisation study,” he adds.
“This has reaffirmed the company’s belief that there is substantial inherent value within this exceptional vanadium and magnetite project.
“Metallurgical testwork continues to derisk the project with the delivery for the first time for the project vanadium pentoxide flake, unlocking the pathway to a flowsheet for production.”
Woodcock notes that testwork is continuing to examine the opportunity of producing concentrates of copper, nickel, cobalt, and titanium, using various methods on the magnetic concentrate and non-magnetic tail.
The Canegrass Project lies in the Murchison region of Western Australia and contains a global inferred resource estimate of 146 million tonnes @ 0.70% vanadium pentoxide, 31.8% iron, and 6.6% titanium dioxide.
Vanadium is considered a transition metal with a natural resistance to corrosion and stability against alkalis, acids, and salt water. The metal is found in over 60 different minerals, including vanadinite, carnotite, roscoelite, and patronite.
The battery mineral can be used to make steel alloys, for use in space vehicles, nuclear reactors, and aircraft carriers.
Write to Aaliyah Rogan at Mining.com.au
Images: Viking Mines
