Valor Resources’ strategic move to divest up to 80 per cent of its Peruvian copper interests looks set for completion after Firetail Resources shareholders sounded strong approval for the transaction.
Firetail today revealed that about 88 per cent of its shareholders had voted in favour of the Valor acquisition, which is expected to now be completed next week. As revealed earlier this month, Valor had offered Firetail the opportunity in a move designed to stamp its focus more firmly on its uranium and rare earths exploration.
As part of the deal, Firetail will make an upfront payment of $550,000 to Valor, in addition to a package of 15 million shares and 20 million performance rights. Valor will transfer to Firetail 80 per cent of the issued share capital of its fully-owned subsidiary, Kiwanda S.A.C., which holds the mining concessions for the Picha and Charaque projects in Peru.
Notably, Valor will retain significant exposure to the Peruvian assets through a 20.58 per cent shareholding in Firetail on a fully diluted basis and a retained 20 per cent interest in the projects.
Firetail is set to launch a maiden nine diamond drillhole program of some 5000m to target four high-graded prospects in the Picha project as early as October. It believes the chance of discovery is high as the prospects coincide with significant geophysical and/or soil geochemistry anomalies. The campaign will test the presence of four types of copper-silver mineralisation styles and the company will inherit Valor’s experienced in-country Peruvian management and technical team as part of the acquisition deal.
With the integration of the existing Valor geological team into Firetail, we have inherited an experienced team that has ensured the activities in Peru continue to progress, with the exploration camp build and detailed drill planning underway. I need to acknowledge the technical rigour which has gone into the exploration approach at Picha by the in-country team with support from Valor’s Perth office. It is a real credit to Valor.Firetail Resources executive chairman Brett Grosvenor
Once the current drilling program is finalised, permitting approval is already in place for 120 holes at Picha and the work will consist of three holes executed from 40 platforms.
As Valor pivots its focus on its portfolio of high-grade uranium and rare earths in Canada’s Athabasca Basin, where it holds four strategic projects featuring a series of drill-ready targets, it will likely keep a close eye on what Firetail can uncover.
Source : The West Australian