Valor tunes in to Radio project
6th September 2019
Resources Rising Stars
Tiddler Valor Resources is turning its gaze towards the Western Australian Goldfields with an agreement to acquire an interest in the high-grade Radio mine near Southern Cross in Western Australia (reports MiningNews).
Valor's Berenguela copper-silver-manganese project in southeast Peru was recently joint ventured out to Rio Tinto's Kennecott Exploration Company, and with that project in hand it is looking to establish a gold revenue stream by early 2020.
Valor has agreed to terms with privately-run Sulphide-X to acquire Bullfinch One, which recently secured the rights to earn 50% in Radio from Resources & Energy Group in return for spending A$4 million over two years, and 75% with an additional $2 million cash payment.
REZ reopened and refurbished mine access at Radio in 2017, undertaking sampling programs and sending 2700t of development ore grading 5.8 grams per tonne to the nearby Minjar mill for toll treating.
The refurbished Radio underground produced over 72,000 ounces grading 38.5gpt historically.
Valor sees the acquisition of Bullfinch One as an opportunity to bring the mine back into production in at a time when the Aussie gold price approaches $2290/oz.
The high-grade lode systems have a resource of 28,000oz.
It will require around $400,000 and 3-4 months to bring the mine back into service.
Valor will issue 100 million shares to Sulphide-X for Bullfinch One, plus a further 150 million shares if a resource of at least 100,000oz grading 3gpt is defined within the first year, and a further 150 million shares if the mine produced at least 300oz per month within two years.
The deal will settle once Valor has completed due diligence and confirms Bullfinch One has at least $700,000 in cash.
Sulphide-X directors Kabir Osman and Ian Murie will join the Valor board. Murie is a lawyer with four decades experience while Osman is a mining engineer who was chief operating officer at Salt Lake Mining at the time it recommissioned the Beta Hunt nickel and gold mine near Kambalda.
A work program to start production will begin as soon as the deal closes.
Valor had $1.1 million cash at the end of the last quarter.
REZ intends to focus on its Menzies gold project elsewhere in WA's Goldfields.
REZ shares were last traded at 5.3c, valuing the junior at $16 million, while Valor shares were 0.8c, capitalising it at $12.5 million.
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