Viking Mines (ASX:VKA) advances US tungsten strategy through acquisition of production proven Nevada portfolio

Viking Mines has entered into a binding agreement to acquire a portfolio of six high grade, production proven tungsten projects in Nevada, representing a strategic expansion into a United States critical minerals jurisdiction at a time of tightening global supply and heightened geopolitical focus.

The transaction combines extensive historical production credentials, demonstrated high grade mineralisation, favourable infrastructure access and a staged acquisition framework designed to balance technical progress with capital discipline.

Supported by a strategic cornerstone investment from American Tungsten Corp, the acquisition positions Viking to methodically advance a US tungsten platform aligned with domestic supply priorities.

Julian Woodcock, Managing Director and CEO of Viking Mines Limited, addresses key investor considerations arising from the announcement.

What is the strategic rationale for acquiring a portfolio of tungsten projects in Nevada at this point in the market cycle?

The strategic rationale reflects a convergence of structural market dynamics, jurisdictional quality and asset specific fundamentals rather than a single cyclical factor.

Tungsten is designated as a Critical Mineral in the United States, yet the country currently has no domestic production and remains entirely reliant on imports, a dependency that has become increasingly exposed given that approximately 85% of global supply is controlled by China.

This concentration has coincided with tightening export controls and a material strengthening in tungsten prices throughout 2025, which reached record levels of US$780 to US$820 per MTU of APT.

Viking is securing exposure to a production proven tungsten portfolio in Nevada at a time when the United States has no domestic supply, global availability is tightening and tungsten prices have reached record levels, creating a compelling strategic entry point into a designated US critical mineral.

By acquiring a portfolio of production proven assets in Nevada, Viking is establishing a presence in a Tier 1 mining jurisdiction with a long operating history, strong infrastructure and a well understood regulatory environment.

Importantly, the projects are differentiated from early stage greenfields opportunities by their demonstrated production history, known metallurgy and documented high grade mineralisation, which provides a more advanced technical starting point.

The acquisition also aligns the Company with potential US government funding pathways, including those available under the Defence Production Act, which are increasingly focused on securing domestic critical mineral supply chains.

How does the historical production and grade profile across the portfolio underpin confidence in future exploration outcomes?

Historical production provides an important reference point for both grade and continuity, and the Nevada portfolio benefits from a substantial operating legacy across multiple projects.

Four of the six projects have recorded historical production of approximately 123,000t at an average grade of 0.54% WO3 from within the mineral claims, while the remaining two projects are associated with adjoining mines that collectively produced approximately 110,000t at 1.00% WO3.

When considered together, this represents combined production of approximately 233,000t at an average grade of 0.76% WO3 across the broader project areas.

The Nevada portfolio is underpinned by extensive historical production and high grade mineralisation, with approximately 233,000t produced at an average grade of 0.76% WO3 across the project areas, providing a robust technical foundation for systematic verification and targeted exploration.

At the flagship Linka Project, mining between 1941 and 1956 processed approximately 65,000t of ore at 0.49% WO3 through a 360 tonne per day mill, with mineralisation developed across an approximately 820m strike length that remains open to the northeast and southwest.

Historical underground channel sampling and drilling have identified multiple high grade intervals over meaningful widths, including 6.1m at 1.50% WO3 and 10.1m at 0.79% WO3.

While these results are historical and not yet reported under JORC 2012, they provide a strong technical basis for verification and targeted exploration as the Company advances its work programmes.

What is the Company’s near term technical focus during the due diligence and early exploration phase?

The Company’s near term focus is deliberately centred on verification, data integrity and disciplined technical progression.

Viking has commenced a structured due diligence process that includes legal confirmation of mineral claims, on ground inspections and initial sampling activities, supported by a recent field visit to Nevada that enabled assessment of access, infrastructure and historical workings.

Over the coming weeks, priority workstreams include the compilation and digitisation of historical geological, sampling and production datasets to consolidate all available information into a modern exploration database.

In parallel, rock chip sampling programmes are being undertaken to verify historical grades, while larger composite samples exceeding 200kg are being collected to support metallurgical and mineralogical testwork.

Geological and geophysical consultants are being engaged to support mapping and data collection aimed at developing JORC 2012 Exploration Targets, while the process to obtain drill permitting with relevant US federal agencies has commenced to ensure the Company is positioned to progress efficiently once early stage technical milestones are achieved.

How does the acquisition structure manage financial risk while preserving long term upside for shareholders?

The acquisition has been structured to balance opportunity with capital discipline, ensuring that financial exposure remains aligned with technical progress.

Total consideration of US$2.88M is payable over a staged period of up to seven years, with only US$200,000 required within the first two years, allowing Viking to advance due diligence and early exploration with limited upfront capital.

The staged acquisition structure allows Viking to advance due diligence and early exploration with limited upfront capital, while retaining flexibility to accelerate ownership as technical confidence builds and market conditions evolve.

Viking retains the ability to accelerate payments and secure full legal title at any time should the projects meet internal technical and strategic thresholds, while also preserving the right to withdraw from the acquisition without further obligation beyond amounts already paid.

The vendor retains a 2% Net Smelter Return that can be reduced to 1% through a US$2M payment, providing additional optionality in future development planning.

This structure ensures capital deployment remains closely aligned with value creation rather than being front loaded.

What role does the strategic investment by American Tungsten play in de-risking the Company’s US tungsten strategy?

The strategic investment by American Tungsten Corp provides both validation and alignment at an early stage of Viking’s US tungsten strategy.

The $750,000 investment positions American Tungsten as a substantial shareholder and reflects its assessment of the quality and strategic relevance of the Nevada portfolio.

American Tungsten is advancing its Ima Tungsten Mine in Idaho toward production and brings direct experience in developing tungsten assets within the United States.

The strategic investment and technical alignment with American Tungsten reinforces the credibility of the portfolio and strengthens Viking’s position as it works toward establishing a meaningful US tungsten platform aligned with domestic supply priorities.

Beyond capital, the relationship provides in country technical support and creates alignment across exploration, resource growth and future domestic supply pathways, strengthening Viking’s operational footing as it advances its US tungsten strategy.

Building a US critical minerals platform

As Viking Mines progresses through due diligence and early stage technical work, the Company’s immediate focus remains on disciplined verification, data consolidation and methodical advancement of the Nevada tungsten portfolio.

With a strong historical production base, supportive infrastructure and clear alignment with US critical minerals policy, the projects provide a credible platform from which to define exploration targets while managing capital exposure through a staged acquisition framework.

According to Julian Woodcock, Managing Director and CEO, the combination of asset quality, strategic partnerships and favourable market fundamentals supports a measured and disciplined approach as Viking works toward establishing a meaningful and strategically aligned position in the US tungsten sector.

Please note the following valuable information before using this website. 

Independent Research 

Market Open Australia is intended to be used only for educational and informative purposes, and any information on this website should not be taken as investment advice or guidance. It is important to conduct your own research before making any investment decisions, which should be based on your own investment needs and personal circumstances. Any investment decisions based on information contained on this website should be taken in line with independent financial advice from a qualified professional or should be independently researched and verified.