Viking Mines (ASX: VKA) has entered into a binding terms sheet to acquire 100% of six tungsten projects in Nevada, with American Tungsten making a $750,000 strategic investment and providing in-country technical services.
The flagship Linka project hosts mineralisation in three historical mines occurring over approximately 820 metres of strike length that remains open to the northeast and southwest, with extensions untested below shallow cover.
The Linka project demonstrates proven production history via a 360 tonne per day mill that treated ore from the three mines in 1955 and 1956, delivering high-grade stopes up to 3.0% tungsten trioxide.
The US portfolio has delivered significant historical tungsten production totalling approximately 123,000 tonnes at 0.54% tungsten trioxide from four of the six projects.
High-Grade Exploration Upside
Historic channel sampling at Linka includes 6.1 metres at 1.50% tungsten trioxide, 6.1m at 0.96%, 6.1m at 0.84%, and 1.5m at 2.11%.
Historical drill hole results include 10.1m at 0.79% tungsten trioxide from 39.6m and 8.5m at 0.56% tungsten trioxide from 50.9m, demonstrating the exceptional high-grade intercepts attainable from the project.
Mineralisation has been extracted from three historical mines occurring over approximately 820m strike length with significant opportunity to identify and define resources across the project.
The company has commenced due diligence and recently completed a field visit including on-ground assessment, sampling, and claim verification.
Strategic Critical Mineral
Tungsten is designated a US critical mineral, prioritised for funding under the Defence Production Act, with the United States currently 100% import reliant and China controlling approximately 85% of global supply.
Tungsten price has seen major growth throughout 2025, reaching all-time highs of US$780 to US$820 per metric tonne unit of ammonium paratungstate.
The acquisition offers a substantial opportunity to define an important critical mineral resource with potential pathways for US government funding.
Viking has received strong support via binding commitments for a placement to raise approximately $4.295 million before costs.
The placement will see Viking issue approximately 859 million new shares to directors, along with professional and sophisticated investors, at an issue price of $0.005 per share across two tranches
Staged Acquisition Terms
The acquisition follows a staged purchase agreement over a seven-year period for the six projects, with Viking incurring limited upfront costs of US$200,000 in payments over the first two years.
The company can accelerate the acquisition at any time by advancing the required payments, with total acquisition costs of US$2.88 million.
Project vendors retain a 2% net smelter return on all minerals recovered from the projects, which can be bought down to 1% for a payment of US$2m ahead of completion of the acquisition payments.
Chief executive officer Julian Woodcock said securing the high-grade tungsten portfolio in Nevada alongside the strategic investment from American Tungsten will be a significant step for Viking.
"The project's history of production, combined with high-grade historical results and existing drill targets, provides a strong foundation for the company to delineate a critical mineral resource in the US," he said.
"With tungsten designated as a critical defence mineral and prices reaching record highs, the macro environment is highly favourable for this acquisition."
