Viking Ashanti has received Thursday acceptances for 97.08% of unlisted coal development company Auminco Mines.

Viking Ashanti (ASX: VKA) is drawing closer to securing full control over takeover target Auminco Mines after receiving acceptances for 97.08% of the unlisted coal development company.

The takeover offer period has been extended a further 14 days to Friday, 6 June 2014.

Viking has already received a significant endorsement with the securing of a future coal supply agreement with a Mongolian Government power authority for the Berkh Uul Bituminous Coal Project in northern Mongolia.

Auminco holds the Berkh Uul project that is located next to a rail link that connects with Russian markets, and provides quick access to domestic power plants and industrial users at Darkhan and Ulaanbaatar.

It has JORC resources of 38.3 million tonnes of high quality, open pittable unwashed bituminous coal.

Successful production at Berkh Uul would provide significant cash flows to develop the remainder of the combined group's portfolio as well seek out further production and near term production opportunities

Takeover Offer

Under the terms of the offer, which was launched earlier this year, accepting Auminco shareholders will receive 60.6 Viking Shares and 20.2 Viking Options for every 100 Auminco Shares held.

Auminco shareholders will emerge with a 47% stake in Viking, and play a major role in the evolution of Viking as a participant in the Mongolian thermal and coking coal markets.

Source: Proactive Investors