For personal use only
12 January, 2016
Company Announcements Office
Australian Stock Exchange Limited
20 Bridge Street
Sydney NSW 2000
Acquisition of Radio Gold Project
Resources and Energy Group (REZ) is pleased to announce it has entered into an
agreement to acquire 100% of Brightsun Enterprises Pty Ltd (Brightsun), the owner
of the Radio Gold Project situated in Western Australia for $2.05m. The agreement is
subject to finalisation of due diligence and the completion of a capital raising by REZ
of a minimum of $1.5m.
HIGHLIGHTS:
 REZ to acquire 100% of share capital in Brightsun, owner of the Radio Gold
Project;

Payment to Brightsun shareholders of $250,000 cash;

Brightsun shareholders to be issued 7,500,000 shares in REZ (“Consideration
shares”) at 12c per share, subject to 2 years escrow;

Brightsun shareholders to be issued 7,500,000 FPO shares in REZ,
(“Performance shares”) at 12c per share, subject to 2 years escrow &
performance of the Radio Mine; and

REZ to make available $1,250,000 funding for the Radio Project, subject to
development hurdles.
Under the terms of the agreement, REZ will pay $250,000 cash and issue to
Brightsun shareholders in two equal tranches of 7.5m shares issued at 12c each for
100% of the share capital in Brightsun. The issued shares will be subject to escrow
for a period of 2 years. The second tranche of 7.5m Performance Shares will be
subject to a clawback based on the Radio mine realising a minimum net positive cash
position of $1M within 24 months of commencing operations. REZ has agreed to
make $1.25M in funding available for the development of the Radio project.
The acquisition of the Radio project is in line with REZ’s strategy to focus on
development of assets with near term cashflow potential.
Level 33 52 Martin Place Sydney NSW 2000 GPO Box 2537 Sydney NSW 2001
P: +612 9227 8900 F: +612 9227 8901
ABN 12 110 005 822
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In the next 12 months, concurrent with activities at the Radio Project, a series of
work projects will be undertaken (including metallurgical tests) at REZ’s wholly
owned Mt Mackenzie Project.
REZ continues to look for additional suitable projects to add to its developing
resource portfolio.
Radio Gold Project
The Radio Gold mine is on a granted mining lease, M77/633, 35 kilometres north of
Southern Cross in Western Australia. M77/633 occupies a surface area of
approximately 9.8km2 and is located within the Southern Cross Province of the
Achaean Yilgarn Craton. In regional context, the Southern Cross Province is a highly
productive gold bearing greenstone belt which is host to the Copperhead Gold Mine
(1Moz gold past production) located 7km south at Bulfinch (see Figure 1).
Historic mining at Radio mine extended to 100 metres below surface for production
of 57,000t @ 38.5 g/t Au for 71,000 ounces, or approximately 700 ounces of gold per
vertical metre.
The mine was privately owned for 50 years and closed in 1974 at a time of low gold
prices and competition for labour at the nearby Kambalda mines. Radio remains
open at depth and down dip with opportunity for extensions to the known lode
systems. An appropriate drilling programme will be undertaken as part of an initial
expenditure commitment.
Figure 1 Project Location Plan
Level 33 52 Martin Place Sydney NSW 2000 GPO Box 2537 Sydney NSW 2001
P: +612 9227 8900 F: +612 9227 8901
ABN 12 110 005 822
For personal use only
Near mine exploration targets are present at Radio and are prospective for
additional high-grade, low-tonnage style gold resources. The project area also
contains a large number of shallow historic workings which generally targeted quartz
reefs in strongly foliated and folded mafic schist/amphibolites (greenstones), banded
iron formations (BIF), or faulted granite. Figure 2 shows the additional prospects of
M77/633 superimposed on aerial magnetic survey.
Figure 2 Prospect Location Plan
Work Plan
REZ is targeting to develop a small, high-grade resource at Radio. Previous mapping
of the Radio Mine by Carn Brae in 1991 concluded there was sufficient indication of
remnant ore and extensions of ore shoots to warrant consideration of trial mining.
Brightsun has received Works Approval from the Department of Environmental
Regulation to dewater the existing workings. The dewatering will provide mine
access to conduct geological assessment of the historical workings, including channel
sampling, an underground drilling program and a bulk sampling campaign.
The Brightsun acquisition also includes a 10 tonne per hour gravity processing plant
for use at Radio, Plate 1. The plant requires some minor refurbishment before being
ready for use. The existing mine shaft will provide immediate access for dewatering
and appears in good condition, Plate 2. The lower workings were reported as being
in good condition when last dewatered in 1991 and will be assessed and
rehabilitated as required.
Level 33 52 Martin Place Sydney NSW 2000 GPO Box 2537 Sydney NSW 2001
P: +612 9227 8900 F: +612 9227 8901
ABN 12 110 005 822
For personal use only
Plate 1 Ball Mill 10tph
Plate 2 Radio Shaft 105m deep
Fund Raising
In conjunction with the acquisition, REZ intends to raise $2.4m to fund ongoing
development of its projects. The company will be seeking shareholder approval for
the funding arrangements in due course.
Please contact the company if you have any enquiries.
Warwick Heeson
Company Secretary
RESOURSE & ENERGY GROUP LIMITED
Level 33 52 Martin Place Sydney NSW 2000 GPO Box 2537 Sydney NSW 2001
P: +612 9227 8900 F: +612 9227 8901
ABN 12 110 005 822