Viking Mines’ (ASX:VKA) takeover bid for unlisted...

Viking Mines’ (ASX:VKA) takeover bid for unlisted Mongolian-focused coal developer Auminco Mines is now free of all defeating conditions.

The company has waived the remaining condition related to the size of its capital raising.

The company is also currently raising up to $3.04 million through an offer of shares and has already has already exceeded its minimum level of $2,090,000.

Viking has already received acceptances for more than 97% of Auminco shares. The takeover closes on 26 September.

Auminco shareholders will emerge with a 47% stake in Viking after Viking's takeover offer which is significant as Auminco was established by founding shareholders and management of Coalworks Limited that was sold to Whitehaven Coal (ASX: WHC) for ~$200 million in mid-2012.

Besides the flagship Berkh Uul Bituminous Coal Project, which has already signed four non-binding memoranda of understanding with Mongolian industrial users relating to future potential coal supply, Auminco also holds:

-    The Khonkhor Zag anthracitic coal project in the Trans-Altai Coal Basin in Govi-Altai Province, South West Mongolia;
-    The early stage Buduun Project in a proven hard coal region in Khovd Province, Western Mongolia;
-    The Dalt and Budargana coal projects in Dundgovi Province, Central Mongolia; and
-    The Tsairt Zinc joint venture project in Sukhbaatar province in eastern Mongolia.

Capital Raising

Viking is raising up to $3,040,000 by the issue of up to 80 million shares priced at $0.038 each with 1 free attaching option for every four shares subscribed.

These are exercisable at $0.09 at any time on or before 30 April 2017.

The company has already received a strong show of support from investors with applications for its offer of shares and options having exceeded its minimum level of $2,090,000.

This is expected to swell further before it closes on Friday, 29 August 2014.

Analysis

With the waiver of the last remaining condition and acceptances already over 97%, Viking Mines is poised to complete the acquisition of Auminco Mines, giving it a package of attractive coal projects in Mongolia.

Berkh Uul in particular has drawn considerable interest with four non-binding MoUs with local industrial users and potential to produce a high quality, high energy thermal coal suitable for export markets.

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