Thailand-based smelter and refiner Thaisarco will take all tin concentrate produced from the Khartoum project, if it is developed.

 

Additionally, Thaisarco will have the right to enter into offtake and pre-purchase agreements for any other tin developments Jadar acquires or develops in the future.  

 

It is early days for Jadar's project, which comprises six exploration licences covering about 490 square kilometres in Northern Queensland, roughly 100km southwest of Cairns. 

 

Jadar only bought the project from Jervois Mining in February this year and is yet to outline development plans.

 

The company's next steps will be to carry out a drilling program across the acreage.

 

With offtake more or less secured, Jadar said it would be able to begin full development of the mine.

 

Jadar executive director Navin Sidhu said the execution of this memorandum of understanding gave the company a clear direction towards a definitive agreement and potential pre-purchase of tin concentrate that will allow it to fully develop the Khartoum project.

 

"We now have a potential non-dilutive development funding pathway for Khartoum and potentially for our other tin projects," he said.

 

The tenements that make up the project already host a "large number" of historic tin and lead mines.

 

Jadar completed a review of historic mining and exploration of its project last month.

 

Its forthcoming drill campaign will focus on an area dubbed Boulder-Ahmets, which is a 9km by 3km zone of anomalous tin.