Valor Resources : Quarterly Activities Report.pdf (7)

ASX Release

31 July 2020

VALOR RESOURCES LIMITED

ACN 076 390 451

22 Lindsay Street

PERTH, WA

Australia

Tel: [phone]

Fax: [phone]

Contact: Dr Nick Lindsay

E-mail:

[e-mail]

@valorresources

Directors

Brian McMaster

Nicholas Lindsay

Paula Smith

Company Secretary

Paula Smith

ASX Code:

VAL

Ordinary Shares:

1,920,848,085

Options:

400,000,000 ($0.015 - 31/12/2021)

JUNE 2020 QUARTERLY ACTIVITIES REPORT

Valor Resources Limited (Valor) or (the Company) (ASX: VAL) is pleased to provide its report for the quarter ended 30 June 2020.

OPERATIONAL UPDATE

Radio Gold Project

Valor announced on 14 April 2020 that it had signed a conditional sale agreement (Sale Agreement) with Summit Resource Holdings Pty Ltd (Purchaser), a wholly owned subsidiary of Nu-fortune Gold Limited, an unlisted public company, to acquire Valor's interests in the Radio Gold Project tenements held by its 100% owned subsidiary Bullfinch One Pty Ltd for total consideration of $900,000 cash in several instalments with the final $150,000 for the reimbursement of expenses to be paid in three instalments of $50,000 following completion. During the quarter and prior to settlement, Valor undertook $144,000 of de-watering and development activities for the Radio Gold Project.

On 5 May 2020, Valor announced that the settlement of the sale agreement was completed and Valor had negotiated with the Purchaser to pay the $150,000 payable in instalments at settlement in exchange for a $20,000 discount. Total consideration of $880,000 was received and Valor and Bullfinch One no longer hold any interests in the Radio Gold tenements or Project.

Peru Projects

As previously announced, the documentation has been completed to transfer the entities which hold rights to the Berenguela Project back to SSR Mining Limited (SSR) (or its nominee) on terms where the consideration for the transfer is the release and discharge of Valor's acquisition obligations including the release of outstanding amounts of USD $10.8m owed to SSR and relevant security interests. Settlement of the transfer was anticipated to be completed by 31 July 2020 however delays experienced with lodging the necessary documentation with Peruvian Regulators (due to Covid-19 closures) have necessitated an agreed extension for settlement to 31 October 2020.

Picha Project & Berenguela South

As announced on 31 January 2020, Valor intends to continue its focus on developing the exploration potential of its 100% owned Berenguela South and Picha Projects however during the quarter a strict Covid-19lock-down regime was applied in Peru preventing any substantive mining exploration activities being undertaken. Desktop studies have continued with the emphasis on facilitating a restart of field activities as soon as circumstances allow.

CORPORATE UPDATE

As at 30 June 2020 and following settlement of the Radio Gold Project sale, the Company held approximately $626,000 in cash (31 March 2020: $117,000).

In accordance with Listing Rule 5.3.5, Valor advises that the payments to related parties as advised in the Appendix 5B for the period ended 30 June 2020, pertain to accounting fees and serviced office rent and IT support paid during the quarter.

This announcement has been authorised for release by the Board of Directors.

For further information, please contact:

Dr Nicholas Lindsay, CEO

Email:[e-mail]

Phone: + 61 8 9200 3467

Appendix 1 - Interests in Mining Tenements Held

				Ownership	Ownership	Acquired	Disposed of
Project	Concession Name	Tenement	Location	at beginning	at end of	During the	During the
				of quarter	quarter	Quarter	Quarter
	Berenguela	13-000001Y03
	Berenguela 01-09	01-01116-09
	Berenguela 01-18	01-00819-18
	Berenguela 02-18	01-00904-18
	Berenguela 02-09*	01-01115-09*
	Berenguela 03-09**	01-01341-09**
	Berenguela 04-09	01-01342-09
Berenguela	Berenguela 05-09	01-01344-09	Peru	100%	100%	-	-
Project	Berenguela 06-09	01-01345-09
	Berenguela 07-09	01-01340-09
	Berenguela 08-09	01-01343-09
	Berenguela 97	01-01289-97
	Lagunillas 01-04	01-01350-04
	Lagunillas 02-04	01-01351-04
	Lagunillas 08-04	01-01512-04
	Lagunillas 10-04*	01-02710-04*
	Corona 02-18	01-01209-18
Berenguela	Corona 03-18	01-01210-18
Corona 04-18	01-01211-18	Peru	100%	100%	-	-
South
Corona 05-18	01-01212-18
	Corona 06-18	01-01213-18
	Picha 2	01-03853-05
Picha	Picha 3	01-03854-05	Peru	100%	100%	-	-
Project	Picha 7	01-00578-07
	Leon 3	01-04638-08
Radio Gold		ML77/633	Western
Radio Gold Project	M77/81	6.25%	-	-	6.25%
Project	Australia
	P77/7792

• 01-02710-04and 01-01115-09 overlap a pre-existing and current title known as Santa Lucia 14.
• 01-01341-09 overlaps a pre-existing and current title known as Lucia Josefina I.

Appendix 2 - Summary of Exploration Expenditure Incurred per Project

Project	Quarter Cash Spend
	$A'000
Berenguela Project	3
Picha Project	-
Total	3