The company, previously Western Minerals before the dot-com boom saw sex-selling businessman Malcolm Day take control and use the shell as the vehicle for Adultshop.com, started its re-entry into the resources space earlier in the decade, but its initial attempts sputtered out.

 

Last September it optioned the Highline cobalt-copper project in Nevada, and yesterday it added to that with a binding agreement with American Vanadium, a company run by Paul Lloyd, who previously worked with Day at Paynes Find Gold, for a copper project in Utah, and three uranium/vanadium projects in Utah and Colorado.

 

The deal requires re-compliance with the Australian Securities Exchange listing rules, Delecta to raise at least $2.5 million at 2c, and will see the board refreshed new directors: Pitcher Partners' Bryan Hughes as chairman, and ex- Moto Gold Mines exploration manager Greg Smith as technical director

 

Following a two-for-five share consolidation, Delecta will issue 100 million shares to the vendors, plus 200 million performance shares due at key points including definition of a 15,000 tonne copper equivalent resource grading at least 0.7% within five years, and on completion of a scoping study. 

 

One of AVP's vendors will also be granted a 3% royalty. 

 

The suits of assets are underpinned by Copper Ridge that was previously explored by ASX-listed Firestrike Resources. 

 

Copper Ridge contains four historical copper mines or prospects over a 9km strike, and while records are incomplete the Tibbets/Hoosier mine graded 8% copper. Firestrike defined numerous prospects and anomalies.

 

The project shares a similar geological setting to the copper mineralisation being exploited at the 20-30 million pound per annum  Lisbon Valley copper mine 95km to the southeast. 

 

The other projects comprise Radium Mountain and Wedding Bell, within the Uravan Mineral Belt, Colorado, close to White Mesa, the only operating conventional uranium mill in the USA that has a large surplus production capacity.

 

The underexplored Vanadium King project in Utah was largely defined by reviewing old oil well logs.

 

Delecta's sex business will continue to be part of the company's wider portfolio.

 

The minnow hopes to complete the deal before December 31.

 

Delecta shares were up 40% yesterday to 0.7c, valuing the company at $4.8 million.