viking ashanti, page-6

An old article but might be of interest to those that missed it. Looks like it's shaping up to be a very good IPO especially with the Gold price hitting new highs. Did anyone get stock? I think i missed out due to overwhelming demand.

Resolute spin-off offers bright prospects

* FLOAT WATCH: Tim Morris
* From: The Australian
* April 07, 2010 12:00AM

COMPANY: Viking Ashanti

PROPOSED LISTING DATE: May 5

PROPOSED ASX CODE: VKA

SHARES ON OFFER: 26.7 million

ISSUE PRICE: 30c

MARKET CAPITALISATION: $20.75m

PROSPERITY is outshining political risks for gold explorers in West Africa. Apart from the $US1000 an ounce gold price, a growing number of discovery successes are fuelling interest.Capturing investor hearts have been dazzling performances by the likes of Perseus (PRU) and Ampella Mining (AMX).

After unearthing "million-plus" ounce gold deposits, these companies are capitalised at $680 million and $200m, respectively.

Since 2004 Perseus has increased an initial 450,000oz resource in Ghana to six million ounces, while Ampella has established a 1.2 million ounce resource from scratch in Burkina Faso after six months of drilling.

If the law of proximity has any bearing, Viking Ashanti has the potential to emulate some of their success. It is being spun out of established West African gold producer Resolute Mining. Underpinning the float is Resolute's exploration ground in Ghana, which appears promising enough to warrant its own dedicated management team and budget.

Within this tenement package, the Akoase East project is most advanced. A resource of 490,000oz has already been established, but lying only 25km away from Newmont's 8.7 million ounce Akyem project, the odds of uncovering additional ounces via further drilling appear favourable.

The West Star/Blue River project in the nation's south also offers solid potential. A resource has yet to be established, but we are heartened by the presence of Adamus Resources' two million ounce Salman gold project just next door, and Goldfield's 15 million ounce Tarkwa mine 40km to the north.

During the next two years management aims to increase the company's gold inventory to more than a million ounces, and it is no stranger to success in the region. Managing director Peter McMickan and chairman John Gardner were both previously involved in Guinor Gold's development of the four million ounce Lero Gold project in West Africa.

If a similar story of discovery success were to emerge at Viking Ashanti the stakes could be a lot higher.

www.wise-owl.com