Sydney-based Auminco was founded by the team behind Coalworks and has been hoping to list on the Australian Securities Exchange.

Viking will acquire 100% of Auminco in a scrip deal that will see Auminco shareholders wind up with 59% of the combined company.

The merger will create a company with gold, coal and zinc projects in Ghana, Australia and Mongolia.

Viking said the merger was transformational because it gave the company access to Auminco’s advanced coal assets in Mongolia.

“The achievement of Auminco in gaining quality assets and mining approvals in Mongolia gives Viking excellent prospects of early production and positive cashflow,” Viking chairman Jack Gardner said.

“Combined with our Ghana gold assets and our management team, this augurs well for successful and sustainable growth of Viking in an otherwise challenging global equities environment for junior players in mining.”

Gardner will remain as chairman of the enlarged company, Auminco chairman Andrew Whitten will be deputy chairman and Auminco managing director Matt Morgan will lead the company.

Viking MD Peter McMickan will be an executive director, as will Auminco’s Bayar Tsagdaa.

Mike Langoulant will remain company secretary, while Viking directors Trygve Kroepelien and Mark Newlands will resign.

Viking’s flagship project is the 790,000-ounce Akoase East gold project in Ghana, while Auminco’s lead project is the Khongkor Zag coal project, which sits 60km from the Chinese border in Mongolia.

Khongkor Zag has a granted mining licence and a JORC resource is due next month.

Auminco’s other main project is Berkh-Uul, which is right on the Russian border and has a 42 million tonne thermal coal resource, as well as another three greenfields coal projects and an iron ore-zinc project in Mongolia.

The combined company will embark on a minimum $A4.5 million capital raising early next year.