- Jadar Resources (JDR) executes MOU with a Thai tin smelter company for the supply of tin from the Khartoum project in North Queensland
- Through a definitive agreement, Thailand Smelting and Refining Co is set to pre-pay an amount to pre-purchase a portion of tin concentrate at a discount from Jadar
- JDR says the pre-purchase will provide sufficient funding for full development of the project
- Additionally, the deal gives THAISARCO a right of first refusal for all other tin projects
- Shares have been trading flat at 4.4 cents
Jadar Resources (JDR) has signed an agreement with a Thai tin smelter company for the supply of tin from the Khartoum project in North Queensland.
The non-binding memorandum of understanding (MOU) is with Thailand Smelting and Refining Co, known as THAISARCO, which is the sixth-largest smelter in the world.
Jadar acquired the tin, silver and tungsten project from Jervois Mining (JRV) in February and recently conducted an early reconnaissance field trip across the region.
Under the MOU, the parties have agreed to enter into a definitive agreement within six months for the supply of up to 100 per cent tin concentrate offtake, or a set pre-purchase amount at a discount from Jadar.
With the potential pre-purchase, the company said it would be able to carry out full development of the Khartoum project.
Additionally, the terms of the agreement state THAISARCO will be granted the right of first refusal to enter into offtake or pre-purchase arrangements for all other tin projects, including any joint venture projects between the parties.
According to Executive Director Navin Sidhu, the deal is a pleasing result for the company, giving it a “clear direction” towards a definitive agreement and potential pre-purchase.
“What will be extremely pleasing for shareholders is that we now have a potential non-dilutive development funding pathway for Khartoum and potentially our other tin projects,” he said.
“We’ve managed to progress quickly at Khartoum since entering into the initial purchase agreement in February 2021 but we certainly have no intention of slowing down any time soon with field work and a drilling program planned.”
If the parties are unable to finalise the definitive agreement before the expiry of the completion period, negotiations can be extended for an extra month, or either party may terminate the MOU.
Shares were trading flat at 4.4 cents at 11:19am AEDT.