Jadar Resources says it is assembling an operational team to bring the Texas silver mine back into production as soon as possible.
The mine is part of the Granite Belt Project, located about 7km east of the town of Texas in the Goondiwindi region of southern Queensland.
Jadar Resources announced today that it had completed due diligence on the assets and was moving ahead with the acquisition under a deal with the liquidators of Moreton Resources.
It will pay $500,000 cash, with non-refundable deposit of $120,000 payable within three business days of execution of the term sheet.
In addition to those terms, Jadar said it would fund care and maintenance costs in respect to the Texas (Twin Hills) silver mine until completion of the sale agreement.
“There has been a claim of an equitable interest in the Texas silver mine assets by a creditor of Moreton Resources Limited who has lodged a caveat over the assets,” it said an an update to the ASX today.
“The liquidators will work with the company to deliver title and to complete the transaction.
“In anticipation of this matter being dealt with forthwith and the completion of the acquisition, the Board is assembling and securing an operational team, including a senior manager, to bring the Texas silver mine into production as soon as practicable.”
Macmin ran a heap leach operation at the site from 2000 and commenced mining production in 2008 to 2009. The operation was re-commissioned by Alcyone in 2011 and production continued until early 2014.
It was restarted by Moreton Resources from 2016 until early late 2019, when operations ceased due to funding and production issues.
Moreton Resources sold 32,582 troy ounces of silver from the project for the six months to December 31, 2019.