Jindalee Resources Ltd (ASX:JRL) has entered into a binding preliminary sales and purchase agreement with SilverStream SEZC, which will see SilverStream purchase non-core royalty interests from Jindalee for $500,000.
This agreement is the basis for a definitive sales and purchase agreement (DPA) conditional on third-party consents and approvals being obtained by Jindalee.
The royalties to be sold to SilverStream cover projects in the Eastern Goldfields of WA, including West Kundana, Kookynie, Kelly Well, New Bore and Millrose.
Jindalee managing director Pip Darvall said: “The proposed sale of the royalties to SilverStream continues Jindalee’s strategy of divesting non-core assets in order to focus on projecrts with the potential to create value for shareholders.
“The best opportunities for value creation are our McDermitt lithium and Widgiemooltha gold-nickel projects and this sale allows our ongoing activities to be supported whilst retaining an indirect interest in the royalties through our SilverStream holding.”
Consideration will comprise $250,000 in cash and a $250,000 convertible note with a 12-month expiry.
SilverStream’s chief executive officer Kyle Floyd said: “We are pleased to announce this transaction with Jindalee.
“It maximises the value of the company’s non-core holding of royalties and allows Jindalee to share in the value created in SilverStream’s impending public listing, whilst realising capital that furthers the development of their core projects.”
Jindalee recently confirmed high lithium recoveries with lower acid consumption during leach recycling tests at the McDermitt project on the Nevada-Oregon border in the US.
The tests were designed to:
- Test the potential to reduce acid consumption by recycling the leachate; and
- Test the potential for beneficiation of the run of mine ore by separation of a specific size fraction.