Viking Ashanti (ASX: VKA) is well on its way to securing a package of advanced thermal and coking coal assets in Mongolia after receiving 75.72% acceptances for its off-market takeover of unlisted Auminco Mines.
It also intends to extend the takeover offer period by 14 days to Friday, 23 May 2014.
This includes the Berkh Uul project that is located in northern Mongolia next to a rail link that connects with Russian markets, and provides quick access to domestic power plants and industrial users at Darkhan and Ulaanbaatar.
It has JORC resources of 38.3 million tonnes of high quality, open pittable unwashed bituminous coal.
Successful production at Berkh Uul would provide significant cash flows to develop the remainder of the combined group's portfolio as well seek out further production and near term production opportunities
Under the terms of the offer, which was launched earlier this year, accepting Auminco shareholders will receive 60.6 Viking Shares and 20.2 Viking Options for every 100 Auminco Shares held.
Auminco shareholders will emerge with a 47% stake in Viking, and play a major role in the evolution of Viking as a participant in the Mongolian thermal and coking coal markets.
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