Yes, the tool is a valve core remover. Some valve caps will have this tool built into the cap. It's like a little U shaped thingy. Most Auto parts stores will sell the proper tool or sell metal valve caps that have the tool built in. I prefer the metal one shown below in one of my tool kits:

See the plastic box at top of pic? (Tube Repair Kit). See that little metal tool sitting on top of it? That is a valve core tool. Never try to break the bead on a flat tire without first removing the valve core from the valve stem.

Many riders wonder why they are not able to BREAK THE BEAD on a "flat" tire. Sometimes the tube is not totally flat and retains enough air to make it impossible to break the bead. So, always remove valve core from valve stem.

I carry a spare valve core as well. They are tiny, kind of delicate. Put the core back in ... snug but not super tight.

Panniers
Sure, you can use any panniers. On some bikes no rack is needed. But keep in mind, once you LOAD those bags with food and a couple bottles of good Chilean Malbec, they will PRESS IN HARD onto your side panels ... and possibly onto the pipe. First, the very expensive plastic side panel will melt .. then the pannier will catch fire.

I'm an expert at this ... done it twice ... nearly burnt down a brand new bike one time.

Try to make sure you have a least an inch of clearance when bags are loaded. Rig some stand offs of some kind ... DO NOT use wood blocks!
(think Charcoal Burkets!)

Bungees are fine ... but won't last very long ... watch your eye balls ... bungees can let go at the worst possible time. I have TWO friends (in movie business) who BOTH lost an eye from a snapped Bungee cord.

The cheap Chinese ones can sometimes break without warning ... and not even show any wear. I use Rok straps, but you won't find those in Chile. Nylon straps that cinch down are better if you can find them. (like on back packs) But use what you've got ... use your best judgement.

Highway riding the panniers will mostly stay in place. Off road all that changes ... so keep an eye on them.



Note the Pie tin between the bag and pipe? This was post fire ... what you can't see is the whole inside of the pannier is burnt up. I wedged this Pie tin in there and some other angled metal ... to hold the pannier off that RED HOT
Stainless Steel Pipe. Alu is much cooler, as is Titanium or Carbon fiber, which does even get hot to the touch. Most stock pipes are Stainless ... and get very very hot.