- Jadar Resources’ (JDR) Peruvian subsidiary, Minera Wealth Peru, has signed a metal streaming term sheet with VCI Holdings
- The term sheet is for up to U.S.$17 million (roughly A$22 million) of funding, with an initial payment of U.S.$5 million (around A$6.5 million) to be made once conditions of the agreement are met and a pre-feasibility study is complete
- The deposit received via the agreement will go towards developing Yanamina through the construction of plant and machinery for the production of gold and silver
- Jadar Resources is up 7.14 per cent, trading at 3 cents
Jadar Resources’ (JDR) Peruvian subsidiary, Minera Wealth Peru, has signed a metal streaming term sheet with VCI Holdings.
The term sheet is for up to U.S.$17 million (roughly A$22 million) of funding. An initial payment of US$5 million (around A$6.5 million) will be made once conditions of the agreement are met and a pre-feasibility study is complete.
The deposit received via the agreement will go towards developing Yanamina through the construction of plant and machinery, for the production of gold and silver.
Minera is the holder of five concessions, known as the Yanamina Gold Project, which is located in the Ancash Province in Central Peru. The project contains an estimated total resource of 6,742,260 tonnes at 1.23g/t gold and and 4.31 g/t silver for 265,987 ounces of contained gold and 934,528 ounces of contained silver.
Under the agreement, Minera will deliver refined gold of a minimum of 850 ounces per month until 13,000 ounces have been delivered.
As per the agreement, Jadar and Minera will grant VCI security for the performance of its metals delivery obligations.
Additionally, Jadar will provide two board seats to VCI, of which current Executive Director Navin Sidhu will hold one.
“The signing of the metals streaming term sheet marks a significant milestone for Jadar as we seek to execute on our Latin America precious metals focused strategy,” said Jadar Resources’ Executive Director, Adrian Paul.
“The funding will allow the Company to progress into production and generate cashflows from Yanamina.”
The agreement will continue for the life of all mining and processing at the Yanamina project.
Jadar Resources is up 7.14 per cent, trading at 3 cents at 1:45 pm AEST.