Jadar Resources has signed a deal to buy the Khartoum tin, silver and tungsten tenement portfolio in the Herberton area as tin prices soar.
The sale and purchase agreement with Jervois Mining would see Jadar pay $300,00 cash for the Far North Queensland project.
Jadar Resources executive director Adrian Paul said the project would increase the company’s exposure to materials considered key to electrical products, such as tin and silver.
“Tin’s outstanding recent performance has seen prices rise dramatically over the last nine months, currently hovering around the $23,000 per tonne mark – levels not seen since mid-2014,” he said.
“This is largely due to tin’s use as a solder in electronics.
“The COVID pandemic has created increased demand for electrical goods due to a need to work from home as well as increased consumer spending on electronics generally given an inability to travel.”
The Khartoum project was of particular interest given the prospectivity of the area, not only for tin, but also silver, tungsten, bismuth, gold, and copper, he said.
“Additionally, historical exploration work undertaken will assist in rapidly
developing targets for drilling at the project,” Mr Paul said.
This would position Jadar to commence activity onsite swiftly following completion of due diligence.
The project, about 100km south-west of Cairns, consists of five exploration permits covering a total area of 396sq km.
The sale remains subject to conditions including Jadar obtaining shareholder approvals.