- Jadar Resources (JDR) signs a term sheet with Outback Metals to purchase the Mt Wells and Maranboy projects in the Northern Territory
- Total consideration is $6.5 million in cash and the issue of 20 million options
- Upon execution of the term sheet, Jadar will have 30 days to complete due diligence with the option to extend for a further 30
- Both Mt Wells and Maranboy are significantly underexplored and haven’t been subject to work since 1929 and 1952, respectively
- Jadar is up 3.23 per cent on the market with shares trading at 3.2 cents at 11:34 am AEST
Jadar Resources (JDR) has signed a term sheet with Outback Metals to purchase the Mt Wells and Maranboy projects in the Northern Territory.
Total consideration is $6.5 million in cash and the issue of 20 million options.
The Mt Wells and Maranboy projects consists of 32 granted mining leases, one mining lease application, two granted exploration licences and one exploration licence application.
Additionally, they consist of several tin, copper, silver, gold, tungsten and iron-manganese prospects.
Upon execution of the term sheet, Jadar will have 30 days to complete due diligence with the option to extend for a further 30.
Completion of the acquisition is subject to Jadar completing and being satisfied with the results of the due diligence.
Mt Wells lies roughly 200 kilometres southeast of Darwin and 37 kilometres northeast of Pine Creek.
It was a historically significant tin producer, however, there has been no meaningful mining since 1929.
Once Jadar acquires the project, it intends to evaluate and convert the non-JORC compliant resources into JORC-compliant resources.
This will enable the project to be brought back into production and further expand its development and exploration.
Maranboy lies approximately 380 kilometres southeast of Darwin and 160 kilometres southeast from Mt Wells.
It is significantly underexplored and is considered to have potential to contain alluvial and hard rock tin deposits.
Operations began in 1913 and ended in 1952 with no mining activities undertaken since then.
Executive Director Adrian Paul commented on the acquisition.
“The acquisition of the Mt Wells and Maranboy Projects portfolio is another significant achievement for Jadar as we continue to build a clear strategy for our Australian group of assets and that is a focus on technology and precious metals,” Mr Paul said.
“The shortage of tin in the global market is now clearly evident and we believe we have started to collate the right projects to help fill that gap.”
Jadar was up 3.23 per cent on the market with shares trading at 3.2 cents at 11:34 am AEST.