- Jindalee has formed a joint venture with GWR at Prospect Ridge Project.
- The Company has announced the sale of 70% of its interest in the magnesium project to Tasmanian Magnesium Pty Ltd.
- Jindalee was actively engaged with potential partners seeking to develop Prospect Ridge.
In a major development, Australia-based Jindalee Resources Limited (ASX:JRL) has announced the sale of 70% of its interest in the Prospect Ridge Project to Tasmanian Magnesium Pty Ltd (TM). For the sale transaction, the Company has signed a Binding Term Sheet with TM, which is a wholly owned subsidiary of GWR Group Ltd (ASX: GWR).
Located in NW Tasmania, the Prospect Ridge Magnesite project area sits on a granted Exploration Licence (EL5/2016), which is 11km long and 51 sq. km in size. The Project contains two deposits, the Lyons River and Arthur River deposits containing the third largest Magnesite inventory in Australia.
Terms of transaction
Jindalee will sell its 70% interest in the project for a total consideration of A$1 million, payable in cash and GWR shares. A$0.25 million payment will be made in cash and A$0.75 million in GWR shares.
The Company currently holds a 100% beneficial interest in the Prospect Ridge Project through its wholly owned subsidiary HiTec Minerals Pty Ltd. Under the deal, Jindalee will retain its 30% interest in the Tenement via HiTec on a free carry basis until a decision to mine has been made.
As a part of the transaction, TM is required to spend a minimum of A$2 million on the Project and complete a Scoping Study within 5 years of settlement. In the event that TM does not meet this expenditure, its Tenement interest will revert back to HiTec and TM will have no further interest in the Project.
The settlement will take place within seven days of the following conditions precedent being satisfied:
- the parties entering into a formal Sale and Purchase Agreement; and
- the receipt of all essential statutory approvals for the transfer of the Tenement interest.
About Prospect Ridge Project
As highlighted before, the Prospect Ridge Project comprises both the Lyons River and Arthur River magnesite deposits. The Arthur River deposit comprises an Inferred Mineral Resource of 25 million tonnes of Magnesite grading 42.4% MgO at a cut-off of 40% MgO.
The Lyons River deposit is located 6.5km south along strike of the Arthur River deposit. This deposit has an ETR (Exploration Target Range) of 40- 60 million tonnes of Magnesite grading 40-44% MgO at a cut-off of 40% MgO.
Jindalee was actively engaged with potential partners seeking to develop Prospect Ridge. GWR has established expertise in the export and mining of bulk commodities, and the Company is pleased to introduce GWR as a partner to help advance the Project.
The Company intends to maintain focus on key assets that hold the potential to transform the business, including the US-based McDermitt Lithium Project (USA) and the Western Australia-based Widgiemooltha Nickel-Gold-Lithium Project.
As of 1:50 PM AEDT, JRL shares are trading at A$2.320.