Jadar Resources has dropped its planned purchase of the Granite Belt Project, including the Texas silver mine.
The company said yesterday it had formed the view that the asset owners Moreton Resources and subsidiary MRV Metals, both in liquidation, were unable to deliver unencumbered title to the Granite Belt assets and unable to complete the transaction.
The company had entered into the transaction with the liquidators of MRV Metals and in September said it had completed due diligence and was assembling an operational team to bring the Texas silver mine back into production as soon as possible.
Prior to completion of the sale, persons purporting to be secured creditors of MRV Metals purported to appoint receivers to the Granite Belt assets, Jadar said.
“The receivers refused to recognise or complete the transaction and the liquidators were required to make a court application to determine the validity of the purported appointment and obtain an order compelling the purported secured creditors to release their security,” the company said in an announcement to the ASX.
“The purported appointment of the receivers was validated by the Supreme Court of Queensland on 13 November 2020, and the court declined to make an order compelling the purported secured creditors to release of security.
“The receivers have indicated they do not intend to cause MRV Metals to proceed with the transaction. The company has consequently formed the view that the receivers have repudiated the sale and purchase agreement, and, on 13 November 2020, accepted that repudiation and elected to
terminate the sale and purchase agreement.”
Darryl Kirk and Matthew Joiner of Cor Cordis have been appointed as receivers.