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Resources & Energy Group to get new farm-in partner at Radio project

Valor Resources Ltd (ASX:VAL) is set to acquire REZ’s current farm-in partner at the Radio Gold Mine.

Resources & Energy Group Ltd - Resources & Energy Group to get new farm-in partner at Radio Farm
Valor can earn a 50% interest at Radio by spending $4 million

Resources & Energy Group Ltd (ASX:REZ) is on track to get a new joint venture partner for its Radio Gold Mine in Western Australia due to proposed M&A activity.

Valor Resources Ltd (ASX:VAL) has entered into a conditional agreement to acquire Bullfinch One, the present party to a farm-in agreement at Radio.

Through the Radio agreement, Valor will earn a 50% interest in the project, by undertaking $4 million expenditure over a two year farm-in period.

This is a mutually beneficial result, Valor as a public company has greater ability to access funding to explore and develop Radio Hill, which REZ remains leveraged to.

REZ keeps focus on Menzies area and Mount Mackenzie

REZ’s CEO Christian Price said: “We are pleased that Valor has recognised the potential of the Radio Gold Mine.

“With samples grades underground of up to 0.5 metres at 522 g/t, Radio represents a high-grade mining opportunity and a cornerstone for their Australian portfolio.

“We see the benefit of Valor being our Radio farm in partner given Valour’s access to public company capital markets and determination to progress the development of Radio.

“REZ will now continue to focus on our large Menzies holdings and progress our Mount Mackenzie gold project in Queensland with an updated scoping study to be released shortly.”

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