Viking Mines (ASX:VKA) has extended its bid to secure full control of unlisted coal development company Auminco Mines to 4 July 2014 from 6 June.

It has received acceptances for 97.08% of Auminco, which holds the 38.3 million tonne Berkh Uul project in Mongolia.

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.

Berkh Uul hosts high quality, open pittable unwashed bituminous coal and 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.

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.

Viking has not declared the offer free of defeating conditions.

Source: Proactive Investors