News: Viking Mines heads to market

Viking Mines (ASX:VKA) is preparing to release details of a capital raising.

The ASX has granted the company a trading halt, with its shares placed in pre-open.

Just last week VKA and a major Mongolian industrial company signed an initial non-binding Memorandum of Understanding relating to future potential coal supply, with Auminco Mines Limited.

The signing of the MoU with Khutul Cement and Lime JSC (KCLC) was a significant event for the company, as KCLC is Mongolia’s largest cement manufacturer.

This is the fourth MoU secured for Auminco’s Berkh Uul Bituminous Coal Project in north-eastern Mongolia.

The earlier MOU’s are with Darkhan Metallurgical Plant, Darkhan Power Station and Erdenet Power Plant, where it has also established testing of a bulk sample as a basis for technical evaluation of the coal.

Auminco, an unlisted public coal development company is currently the subject of a takeover offer by Viking. To date, more than 97% of Auminco’s shareholder base has accepted the offer.

The halt will remain in place until the opening of trade on Wednesday 20th August 2014, or earlier if an announcement is made to the market.