PERTH (miningweekly.com) – ASX-listed Jandar Resources has signed a sales and purchase agreement with fellow-listed Jervois Mining to purchase the Khartoum tin/silver/tungsten project portfolio, in North Queensland.

Under the terms of the agreement, Jadar would acquire the exploration tenement package in return for A$300 000 in cash.

Subject to Jadar board and ASX approval, Jadar would have 30 days in which to complete its due diligence on the project, and upon completion, would pay the full cash consideration to Jervois.

The Khartoum tenement portfolio is some 100 km west of Cairns and consists of five exploration permits covering a total area of 396 km². The project area has been identified as particularly prospective for tin, silver and tungsten mineralisation, and contains over 50 occurrences.

“The inclusion of the Khartoum tin/silver/tungsten project will add an additional layer of diversification to Jadar’s rapidly growing asset portfolio while also increasing exposure to materials that are considered key to electrical products, such as tin and silver,” said Jadar executive director Adrian Paul.

“Tin’s outstanding recent performance has seen prices rise dramatically over the last nine months, currently hovering around A$23 000/t mark, levels not seen since mid-2014. This is largely due to tin’s use as 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.

“This increased demand, with limited new supply in sight, has been very favourable for tin prices. The Khartoum project is of particular interest given the prospectivity of the area, not only for tin, but also silver, tungsten, bismuth, gold and copper. Additionally, historical exploration work undertaken will assist in rapidly developing targets for drilling at the project. Specifically, historical drilling results as well as high-grade channeling areas which remain undrilled. This will position Jadar to commence activity on site swiftly following completion of due diligence.”