Viking Mines (ASX:VKA) is edging closer to wrapping up its...

Viking Mines (ASX:VKA) is edging closer to wrapping up its takeover of unlisted coal development company Auminco Mines, extending its offmarket bid to 8 August 2014 from 18 July.

It has received acceptances for 97.08% of Auminco, which holds the 38.3 million tonne Berkh Uul Bituminous Coal Project in northern Mongolia.
   
Viking has already signed three non-binding future coal supply agreements that highlight the industrial demand for high quality thermal coal from the project and potential to further expand its customer base.

The company has also extended the date for giving notice of status of defeating conditions to 31 July 2014.

Berkh Uul

Berkh Uul is wholly-owned by Auminco Mines and hosts high quality, open pittable unwashed bituminous coal.

Notably, it is located 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.

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

Coal supply agreements have been reached with Darkhan Metallurgical Plant, Darkhan Power Station and Erdenet Power Plant.

Takeover Offer

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.

Viking has not declared the offer free of defeating conditions.

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