09/08/2021 - 12:00

Jadar bolsters portfolio with NT projects

09/08/2021 - 12:00

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Perth-based Jadar Resources is acquiring two past-producing tin projects in the Northern Territory for $6.5 million in cash, plus options.

Jadar is acquiring two past-producing tin projects in the Northern Territory. Photo: Ivan Bandura

Perth-based Jadar Resources is acquiring two past-producing tin projects in the Northern Territory for $6.5 million in cash, plus options.

Jadar has signed a term sheet with private company Outback Metals to purchase the Mt Wells and Maranboy projects, which contain several tin, copper, silver, gold, tungsten, and iron-manganese prospects.

They include 32 granted mining leases and two granted exploration licences covering about 43 hectares of land.

The acquisition also includes a processing plant, buildings and other infrastructure.

Mt Wells and Marnaboy sit about 200 kilometres and 380km south-east of Darwin, respectively, and were once the largest producing tin projects in the NT, Jadar said.

Mt Wells produced 1,000 tonnes of tin – along with minor copper production – and Marnaboy about 800t.

Executive director Adrian Paul said Jadar’s strategy was to focus on technology and precious metals.

“Tin prices have had an incredible run over the last 12 months with demand for electronic goods as a result of the global COVID-19 pandemic pushing prices higher,” he said.

“This shortage of tin in the global market is now clearly evident and we believe we have started to collate the right prospects to help fill that gap.”

Jadar will pay $6.5 million in cash within 12 months and issue 20 million options to Outback Metals. It intends to fund the acquisition through a $3 million convertible note and a finance facility from Mint Capital Advisors.

The deal is subject to Jadar completing due diligence on the projects.

Its were down 3.2 per cent at 1:45pm AEST to trade at 3 cents each.

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