TIN: Jadar-Thaisarco deal could fast-track Khartoum development
Jadar Resources could fast-track development of its Khartoum mine following the signing of a non-binding MoU with Thaisarco. The two companies have signed a non-binding Memorandum of Understanding (MoU) to negotiate future tin concentrate supply from Jadar’s Khartoum project in North Queensland, Australia.
Jadar acquired Khartoum in February 2021 from Jervois Mining. The 390 km2 license area contains a significant number of historical tin, silver-lead-zinc, copper, and tungsten mines, and is being actively explored by the company. Following initial reconnaissance field work, the company plans to begin diamond drilling on a prospective target in December 2021.
The deal with Thaisarco – the world’s sixth largest tin smelter – lays out the terms of negotiation to reach a Definitive Agreement, which require Thaisarco to either take 100% of the concentrate from the Khartoum project on a contractual basis, or pre-purchase a set amount of material at a discounted price. Jadar Resources’ Executive Director, Navin Sidhu, views this development as “extremely pleasing”.
The MoU also gives Thaisarco the right of first refusal to enter into either offtake or pre-purchase arrangements for any other tin projects owned by Jadar, or that Jadar is a joint venture partner in. Jadar Resources currently owns the Mt Wells and Maranboy projects in the Northern Territories of Australia alongside Khartoum.
The MoU stipulates that the Definitive Agreement must be reached within six months, unless an extension period of one month is agreed. Jadar is currently early in the exploration phase at Khartoum, but, according to Mr Sidhu, the potential pre-purchase of tin would be sufficient to develop the mine to production. Either way, Jadar has “no intention of slowing down any time soon with field work and a drilling program.”
Jadar also plans to evaluate and convert the current known non-JORC compliant resources at Mt Wells into JORC complaint resources to facilitate the development of the project
