As part of High Grade Metals’ (ASX: HGM) strategy to focus on its Australian cobalt, copper and gold tenements, it is advancing the sale of its Western Australian-based Victory Bore vanadium project to Surefire Resources (ASX: SRN).
Surefire has now completed various contractual preconditions relating to the purchase and the remaining conditions are expected to be finalised by 18 January next year.
“We are pleased with the progress of the transaction in challenging markets, and are pleased that 2018 has demonstrated the capacity of High Grade Metals to deliver for shareholders by planning and executing two drilling programs in Australia at the flagship Leogang and Schellgaden projects, and the sale of a non-core asset,” High Grade Metals managing director and chief executive officer Torey Marshall told Small Caps.
As soon as an independent experts report has been finalised, Surefire notified High Grade Metals it would call a shareholder meeting to secure approvals.
Victory Bore sale
The Victory Bore project is contiguous to Surefire’s existing tenements in the region and once the sale is binding, the company will hand over $500,000 in cash and 62.5 million shares for the project.
Further milestones payments amounting to $1.3 million will be made to High Grade Metals upon Surefire completing a pre-feasibility study and making a decision to mine.
Progressing Austrian cobalt, copper and gold projects
According to Mr Marshall, the disposal of Victory Bore will boost High Grade Metals’ cash reserves and free up the company to focus on its prospective 84,000 square kilometres of cobalt, copper and gold tenements in Austria.
Initial drilling at the flagship Leogang copper-cobalt and Schellgaden gold projects was completed last week.
Both projects host historic mines that have been operated on and off for hundreds of years.
A total of eight holes were drilled across the projects with assays anticipated early next year.
While it awaits assay results, High Grade Metals is firming up a work program for early next year that will involve deeper drilling at Schellgaden and simplified vertical holes at Leogang.
“We will be in a strong position in 2019 to have the ability to execute the next phase of exploration with continued strong focus and fundamental capacity,” Mr Marshall noted.