Surefire Resources’ (ASX: SRN) shareholders have approved the purchase of High Grade Metals’ (ASX: HGM) Victory Bore vanadium project in Western Australia – giving High Grade additional cash to advance its core Austrian projects.
The sale of Victory Bore is expected to immediately inject $500,000 cash into High Grade Metals’ reserves, which will help fund planned drilling at Schellgaden and Leogang.
Additionally, High Grade will receive 62.5 million ordinary shares in Surefire, plus $650,000 in cash or shares upon Surefire announcing a pre-feasibility for the project that has an internal rate of return above 20%.
High Grade will also receive a further $650,000 in cash or shares from Surefire upon a decision to mine.
However, the sale is contingent on Surefire raising $1 million through equity capital or debt financing to fund the project.
Surefire’s shareholders gave the greenlight for the Victory Bore purchase earlier this month and the company expects to satisfy the remaining conditions to complete the sale by the end of April.
Schellgaden and Leogang
High Grade plans to kick-off drilling at the Schellgaden gold project in June, with the program to comprise up to 12 holes.
In readiness, High Grade is in discussions with experienced local drillers with suitable rigs.
The company has developed an exploration target for Schellgaden of up to 4.7 million ounces of contained gold grading 15 grams per tonne.
Meanwhile, plans for a smaller drilling campaign at the Leogang copper-cobalt project are also underway.
Drilling at Leogang will target potential mineralisation under old mine workings that were identified via geophysical surveys.
The initial program will comprise between three and four holes, which High Grade will use to determine whether it will carry out any further drilling at the project.
High Grade’s Austrian assets comprises 84,000 square kilometres of tenements prospective for gold, copper, nickel and cobalt.