Jadar Resources is ready to take over Moreton Resources’ southern Queensland Granite Belt tenement portfolio, including the former Twin Hills silver mine.
The company announced that it had entered into a binding term sheet with Moreton Resources and subsidiary MRV Metals, in liquidation, for the acquisition.
It will pay $500,000 cash, with non-refundable deposit of $120,000 payable within three business days of execution of the term sheet.
Jadar said it was carrying out its due diligence, which would be completed
in the coming month.
“The acquisition of this portfolio is a major development for the company and fits strategically into the business model,” chairman Luke Martino said.
“Given the economic cycle and the demand for silver and other metals, these projects have the potential to deliver enormous value to the company
as we apply our expertise and funding.”
Completion of the transaction is subject to Jadar obtaining all required third party, regulatory, and shareholder approvals, and meeting all ASX requirements to affect the transaction.
The Granite Belt tenement portfolio is located about 7km east of the town of Texas.
Previously owned by Alcyone Resources and Macmin Silver, the project encompasses the Twin Hills silver mine (in care and maintenance), as well as a wider portfolio of advanced silver and polymetallic base metal exploration targets.
These include the Mount Gunyan, Hawker, Harrier, and Hornet deposits.
Macmin ran a heap leach operation at Twin Hills from 2000 and commenced mining production in 2008 to 2009.
The operation was re-commissioned by Alcyone in 2011 and production continued until early 2014.
It was restarted by Moreton Resources from 2016 until early late 2019, when operations ceased due to funding and production issues.
Moreton Resources sold 32,582 troy ounces of silver from the project for the six months to December 31, 2019.