Jadar: Successful Completion of Balkan Mining and Minerals IPO
12 July 2021
Highlights
- Jadar’s spin-out of its Serbian assets to Balkan Mining and Minerals Limited completed.
- Balkan Mining and Minerals Limited to commence trading under ticker code BMM following its successful $6.5 million initial public offering (“IPO”).
- Jadar retains a 22% of the equity in BMM allowing shareholders to indirectly retain exposure to the Serbian Lithium-Borate assets.
- Jadar to remain focused on its growing precious, base and technology metals portfolio in Latin America, Australia and Austria.
Jadar Resources Limited (ASX:JDR) (“Jadar”, the “Company”) is pleased to advise that its spin-out company Balkan Mining and Minerals Limited (“Balkan”) has now been admitted to the Official List of the ASX with commencement of trade of its securities on Wednesday, 14 July 2021.
Jadar holds an equity interest of 22% in Balkan (escrowed for 2 years) alongside Sandfire Resources Limited (ASX SFR) who also holds an equity interest of 22% in Balkan following completion of the subscription and collaboration agreement between the parties.
Jadar’s equity interest in Balkan allows the Company to retain exposure to the Serbian lithium and borate assets whilst giving direct focus to the Company’s rapidly growing precious metals portfolio in Latin America, its Austrian lithium assets as well as its base and green technology metals Project in Australia which is currently being acquired.
The admittance of Balkan’s shares to the Official List of the ASX, and official quotation of its shares, follows the successful completion of Balkan’s oversubscribed $6.5 million initial public offering under its Prospectus dated 25 May 2021.
Balkan Mining & Minerals
Balkan Mining and Minerals is focused on the early-stage exploration through to development of borate and associated lithium in the Balkans. The company’s Projects comprise the Rekovac, Dobrinja and Pranjani Lithium-Borate Projects which are located within the Republic of Serbia.
The Rekovac project exhibits a very similar geological setting to the number of lithium – boron deposits along Vardar zone including Jadar Basin, which is host to Rio Tinto’s world-class Jadarite discovery – one of the world’s largest lithium deposits.
The Dobrinja and Pranjani licence areas are located in western Serbia approximately 90 km south-southwest of Belgrade. Earlier studies carried out by the Yugoslavian Geological Survey identified favourable lacustrine strata for hosting lithium and boron within the licenced areas, which has been supplemented by Jadar´s desktop studies that identified the basin’s potential.
Figure 1 – Balkan Mining & Minerals Serbian Asset Portfolio
ABOUT JADAR RESOURCES LIMITED
Jadar Resources Limited (ASX:JDR) is an innovative materials explorer, strategically diversified across precious metals and lithium within Latin America and Europe respectively. The Company aims to generate shareholder value through targeted exploration and development of these assets.
On 2 February 2020, Jadar announced that the Company had completed the acquisition of Minera Wealth Peru S.A.C., the holder of five concessions known as the Yanamina Gold Project. Following the acquisition of Yanamina, a Maiden JORC Resource Estimate was announced of 6,742,260 tonnes @ 1.23g/t gold and 4.31 g/t silver for 265,987 ounces of contained gold, and 934,528 ounces of contained silver, confirming the Yanamina Gold Project as a significant bulk mining development opportunity with strong economic potential[i].
On 17th November 2020, Jadar announced the acquisition of an option over the Tierra Blanca project, a silver zinc and Lead prospect in Chihuahua State, Mexico. The district surrounding Chihuahua is a significant silver producing region with several substantial mines operated by majors and mid-tier companies, District Historical Production of 50Mt at 310 g/t Ag, 8.2% Pb and 7.1% Zn[ii].
Tierra Blanca is a drill-ready project close to infrastructure and several processing plants. Sampling in an exploration drive has revealed high-grade zinc mineralisation outcropping to surface, with structural interpretation suggesting potential for high-grade silver at deeper levels[iii].
Jadar announced in February 2021 that is has signed a sale and purchase agreement with Jervois Mining Limited for the purchase of the Khartoum Tin, Silver and Tungsten tenement portfolio. Due diligence has been completed on the Khartoum Tin-Silver-Tungsten Project in North Queensland Australia and is now moving towards final settlement of the sale and purchase agreement[iv]. Once final settlement has been completed Jadar is planning to complete a sampling and mapping program to refine the most prospective drill targets with the aim to complete a drilling program in 2021[v].
The Company also holds a number of lithium assets located within Austria adding additional diversification to the asset portfolio. The Company’s Weinebene Project in Austria surrounds European Lithium Limited’s Wolfsberg lithium deposit with 11MT @ 1.0%Li2O[vi].
Figure 2 – Jadar Asset Portfolio
ENDS
For further information, please contact:
Luke Martino
Non-Executive Chairman
Tel: +61 8 6489 0600
Adrian Paul
Executive Director
Tel: +61 8 6489 0600
This ASX announcement was authorised for release by the Board of Jadar Resources Limited
Compliance Statement
Yanamina Project
This announcement contains information relating to a Mineral Resource in respect of the Yanamina Project extracted from an ASX market announcement dated 10 February 2020 and reported in accordance with the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (“2012 JORC Code”). JDR confirms that it is not aware of any new information or data that materially affects the information included in the original ASX market announcement and that all material assumptions and technical parameters underpinning the estimates in the original market announcement continue to apply and have not materially changed.
Forward Looking Statements
Forward Looking Statements regarding Jadar´s plans with respect to its mineral properties and programs are forward-looking statements. There can be no assurance that Jadar’s plans for development of its mineral properties will proceed as currently expected. There can also be no assurance that Jadar will be able to confirm the presence of additional mineral resources, that any mineralisation will prove to be economic or that a mine will successfully be developed on any of Jadar’s mineral properties. The performance of Jadar may be influenced by a number of factors which are outside the control of the Company and its Directors, staff, and contractors. These statements include, but are not limited to statements regarding future production, resources or reserves and exploration results. All of such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of the company, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements.
These risks and uncertainties include, but are not limited to: (i) those relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits and conclusions of economic evaluations, (ii) risks relating to possible variations in reserves, grade, planned mining dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be refined, (iii) the potential for delays in exploration or development activities or the completion of feasibility studies, (iv) risks related to commodity price and foreign exchange rate fluctuations, (v) risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental approvals or in the completion of development or construction activities, and (vi) other risks and uncertainties related to the company’s prospects, properties and business strategy. Our audience is cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof, and we do not undertake any obligation to revise and disseminate forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of or non-occurrence of any events.
[i] ASX Announcement 2 Jan 2020 - Acquisition of Yanamina Gold Project Completed, &
ASX Announcement 10 Feb 2020 Maiden JORC 2012 Resource of 265,987ozs Gold and 934,528ozs Silver at Yanamina
[ii] Ryana Silver Presentation - https://reynasilver.com/presentations/GuiguiProject.pdf
[iii] ASX Announcement 17 Nov 2020 - Jadar Portfolio Grows with Acquisition of Tierra Blanca Project in Prolific Mining District
[iv] ASX Announcement 9 February 2021- Acquisition of Khartoum Tin-Silver-Tungsten Project in North Queensland Australia
[v] ASX Announcement 30 March 2021- Due Diligence Completed and Moving Towards Settlement of Khartoum Tin-Silver-Tungsten Project
[vi] ASX Announcement 17 Nov 2020 – First Exploratory Drill Hole Underway at Weinebene Project, Austria
