Diversified battery and base metals explorer Firetail Resources (ASX:FTL) has expanded exploration into Peru on the back of a recently completed acquisition with Valar Resources (ASX:VAL).
The $11.15 million market capitalisation company l has now acquired 60% of the issued share capital of Kiwanda from Valar Resources .
Kiwanda is the entity holding both the Picha Copper-Silver and Charaque Copper projects in Peru.
Firetail notes conditions precedent for its acquisition of up to 80% of the issued share capital of Kiwanda have now been satisfied, with parties proceeding to completion under the binding terms sheet dated 30 June 2023.
Terms of the acquisition included a $200,000 cash payment paid upon the execution of the binding terms sheet in consideration of Firetail being provided an exclusive 90-day due diligence period into Kiwanda and the projects, as well as an additional $550,000 cash payment.
Other terms included 15 million fully paid ordinary shares being issued by Firetail at an issue price of $0.10 per share to acquire the initial 60% shareholding interest in Kiwanda, and 20 million performance rights convertible into shares upon the satisfaction of the vesting conditions.
Upon completion of the vesting conditions, Firetail will acquire an additional 20% interest in Kiwanda.
Firetail announces it will now progress the fully permitted maiden drilling program at the Picha project, with drilling scheduled to begin in early October this year.
Drilling will test 4 targets, named the Cobremani, Cumbre Coya, Maricate, and Fundicion.
Addressing the acquisition, Firetail Resources Executive Chairman Brett Grosvenor says: “The completion of the acquisition is another step along the way to starting our exploration activities at Picha. We are really excited to be able to get things moving on the ground with the experienced Valor geological team continuing to lead the exploration program. We continue to progress the construction of the exploration camp, and the team has detailed drill planning advancing quickly with the engagement of an experienced local drilling contractor to be announced shortly.
With our regulatory approvals in hand, and four prospective targets identified for the initial 5,000m drill program, we look forward to bringing consistent news flow on this exciting asset to our shareholders over the coming months.”
“The completion of the acquisition is another step along the way to starting our exploration activities at Picha“
Valor’s Executive Chairman George Bauk says the transaction simplifies the company’s portfolio, allowing Valor to focus on the substantial potential of ‘high-grade’ uranium and rare earth assets in the Athabasca Basin in Canada.
“At the same time, Valor will retain significant exposure to the future upside in Peru via our shareholding in Firetail and our retained interest in the projects.”
Firetail Resources is a battery minerals explorer with an ‘exciting’ project portfolio with exposure to multiple battery mineral commodities at its well-located Western Australian and Queensland projects.
The company’s newly acquired Picha project is located in Peru and represents an ‘exciting’ copper-silver project with multiple drill-ready targets to be tested in coming months.
Charaque currently hosts a farm-in deal completed with global mining company Barrick Gold, and is located only 30km northeast of Picha.
Both projects cover land areas of 200km-square and 60km-square respectively.
Valor Resources is a globally diversified exploration company dedicated to growth through acquisitions and exploration activities.
Write to Adam Drought at Mining.com.au
Images: Firetail Resources
