Geopolitical Risks Drive Viking Mines’ Bold Move into US Tungsten Supply Chain

Strategic Acquisition in a Tier-1 Jurisdiction

Viking Mines Ltd (ASX, VKA) has announced a significant step forward in its growth strategy by entering into a binding agreement to acquire 100% ownership of six tungsten projects in Nevada, USA. These assets, held by BLK Group LLC, are located in a Tier-1 mining jurisdiction renowned for its stable regulatory environment and mining-friendly policies.

The portfolio includes the flagship Linka Project, which boasts a rich production history and promising exploration upside. The acquisition is underpinned by a strategic $750,000 investment from American Tungsten Corp, a Canadian company advancing its own tungsten mine in Idaho, which will also provide in-country technical services to Viking.

Proven Production and High-Grade Potential

The Linka Project, central to the portfolio, features mineralisation across three historical mines with an 820-meter strike length that remains open for expansion. Historical mining records reveal production of approximately 65,000 tonnes at 0.49% tungsten oxide (WO3), processed through a 360 tonnes per day mill in the mid-1950s. Notably, high-grade stopes yielded grades up to 3.0% WO3, with underground channel sampling confirming significant intercepts such as 6.1 meters at 1.50% WO3.

Across the six projects, historical tungsten production totals around 123,000 tonnes at 0.54% WO3. The portfolio also offers substantial exploration upside, with historic channel samples indicating intervals of up to 2.11% WO3. Viking’s recent field visit and sampling program aim to validate these grades and prepare for a detailed exploration campaign.

Capitalising on Critical Mineral Demand and Geopolitical Dynamics

Tungsten is classified as a critical mineral by the US government, essential for defense, aerospace, and advanced manufacturing. The United States currently lacks domestic tungsten production, relying entirely on imports, predominantly from China, which controls approximately 85% of global supply and has recently tightened export quotas. This geopolitical vulnerability, combined with record tungsten prices reaching US$780-820 per metric tonne unit in 2025, creates a compelling backdrop for developing secure domestic sources.

Viking’s acquisition aligns with US policy priorities, including potential access to government funding under the Defense Production Act. The company’s three-pillar strategy focuses on aggressive exploration to define a mineral resource, metallurgical testwork to optimize processing, and active engagement with federal agencies to secure support.

Funding and Transaction Structure

To finance the acquisition and exploration activities, Viking has secured binding commitments for a placement to raise approximately $4.295 million before costs. The placement is structured in two tranches, with the first tranche already underway and the second tranche subject to shareholder approval in early 2026. American Tungsten Corp is a cornerstone investor in the placement, reinforcing the strategic partnership.

The acquisition payments are staged over seven years, totaling US$2.88 million, with limited upfront costs to allow Viking to assess the projects’ potential with low initial cash outlay. Vendors retain a 2% net smelter return royalty, which Viking can buy down to 1% for US$2 million. The company retains flexibility to accelerate payments or withdraw if desired.

Looking Ahead

Viking Mines is poised to commence detailed exploration and sampling programs in early 2026, focusing initially on the Linka Project due to its scale and production history. The company is also advancing permitting processes to enable drilling activities. With strong infrastructure nearby, including power lines and road access, the projects are well positioned for development.

This acquisition not only diversifies Viking’s asset base but also places it at the forefront of the critical minerals sector in the United States, a market with growing strategic importance amid global supply chain uncertainties.