SYDNEY, AUSTRALIA: Firetail Resources Limited (ASX: FTL), a gold and base metals explorer, has announced that it has signed a binding terms sheet with Valor Resources Limited (ASX: VAL) to acquire up to 80% of the issued share capital of Kiwanda S.A.C., a wholly owned subsidiary of Valor that holds the mining concessions comprising the Picha and Charaque Copper Projects in Peru.

The acquisition is subject to certain conditions, including due diligence, regulatory approvals and execution of a definitive agreement.

The Picha Project is an advanced copper-silver project with multiple drill-ready targets, located in the prolific copper belt of southern Peru. The project covers an area of 3,600 hectares and hosts several mineralized structures with high-grade copper and silver values. Firetail plans to commence drilling at Picha in the coming months to test the potential of the project.

The Charaque Project is an early-stage copper-gold project with significant exploration potential, located in the same region as Picha. The project covers an area of 4,000 hectares and contains several porphyry and epithermal targets. Firetail will benefit from the farm-in deal recently executed by Valor with Barrick Gold Corporation, under which Barrick can earn up to 70% of Charaque by spending US$10 million over five years.

Firetail will also inherit an experienced in-country management and technical team from Valor, with a proven track record of exploration and development in Peru. As part of the deal, Valor’s Executive Chairman, George Bauk, will join Firetail’s Board as a Non-Executive Director, while Frank Beirlein will resign from his current role as a Non-Executive Director of Firetail.

Firetail’s Executive Chairman, Brett Grosvenor, commented: “This acquisition has strategic importance to Firetail as it complements our existing assets and provides near-term exposure to the copper market with drilling commencing in the short term with an experienced ‘ready to go’ team in Peru. The Picha Project is drill-ready following a significant exploration program undertaken over the past 18 months which has identified large numbers of significant targets through surface work coupled with IP/Resistivity surveys. The structure of the deal is complementary to all parties involved and ensures that development of the assets is aligned with the Vendor and Company strategic directions whilst providing a cash-neutral purchase position.”

Firetail intends to raise up to $5 million in connection with the acquisition to fund the drilling and associated costs relating to the projects. The company will provide further details on the capital raising in due course.

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