Valor Resources Ltd. said Sept. 4 that it signed a binding heads of agreement with Sulphide X Ltd. to acquire its subsidiary Bullfinch One, which holds the contractual rights to earn an interest in the Radio gold project that is owned by Radio Gold Pty Ltd., a subsidiary of Resources & Energy Group Ltd., in Western Australia.
Pursuant to the agreement that is expected to be settled this month, Valor will issue Sulphide X 100.0 million shares, and an additional 150.0 million shares upon announcement of a resource of a minimum of 100,000 ounces of gold at an average grade of at least 3 g/t gold at the project within 12 months from settlement, and another 150.0 million shares upon announcement of production at a minimum of 300 ounces of gold per month at the project for a month within 24 months from settlement.
Valor said that a program to start production will begin immediately upon settlement of the acquisition.
The transaction, meanwhile, would appoint Sulphide X directors Kabir Osman and Ian Murie to the board of Valor.
On Aug. 1, Resources & Energy Group said that it signed a farm-in, joint venture and tribute agreement with Sulphide X to develop and expand the Radio project, wherein Sulphide X will gain a 50% stake in the project by spending A$4.0 million in two years.
Under the agreement, Sulphide X can acquire an additional 25% stake, bringing its total interest in the project to 75%, by paying another A$2.0 million in cash over 24 months from the commencement date.
Resources & Energy Group, meanwhile, has the right to retain 25% interest in the project.
The Radio project has a historical gold production of over 72,000 ounces at 38.5 g/t gold.
