While the deal is valued at less than US$5 million, and is chump change for Barrick, it takes funding pressure off Valor, allowing it to concentrate on its nearby flagship Picha copper project, and its expanding portfolio of in Canada.

 

The George Bauk-chaired junior will pocket $800,000 in staged payments for the option for an initial 70% stake, and a further $1 million if Barrick moves to 80%. Barrick will also cover the costs of any prefeasibility study.

 

Over the five years it will spend $3 million on exploration, including a minimum $500,000 over the first 24 months.

 

Valor acquired the 60sq.km Charaque project just over 12 months ago and has just started an extensive soil sampling program across the tenement.

 

Work has provided evidence for epithermal and/or porphyry-related gold and silver mineralisation at the Huallatani target area.

 

Barrick, Teck and London-based Fresnillo are all active in the region, with Bauk saying Barrick optioning Charaque demonstrated "the enormous discovery potential in this district", given it also owns adjacent tenure.

 

The 7.6 million ounce gold equivalent San Gabriel gold-copper development sits within the same mineralised corridor. 

 

Valor aims to start its maiden drilling at Picha, some 30km away, in the near future, targeting the Cobremani, Cumbre Coya, Maricate and Fundicion prospects.

 

In Canada it has four projects targeting a mix of uranium, rare earths and copper. 

 

It plans to begin drilling its priority Moose Lake and Hidden Bay prospect shortly targeting unconformity, basement-hosted sandstone-hosted uranium deposits.

 

While Valor was clearly pleased with the deal, investors appeared to cut their losses and run.

 

Valor's shares plunged 25% back to its 12-month low of A0.3c, reducing the market capitalisation by almost $4 million to $11 million.

 

The stock peaked at 1.1c in September after it outlined its Athabasca Basin targets.

 

The company last raised $3.4 million at 1.1c via an oversubscribed placement with CPS Capital in early 2022.

 

CPS managing director Jason Peterson (4.14%), Tolga Kumova (4.86) and Bauk (2.75%) are all major investors in Valor.