UK company Adriatic Metals, which holds mining concessions in Bosnia, said Australia’s Sandfire Resources has entered its shareholding structure and concluded a strategic partnership deal with the company.
The strategic partnership agreement with the Australian mining company will provide for Adriatic Metals to benefit from Sandfire’s significant technical expertise, and is expected to fast-track the feasibility and development of its projects Veovaca and Rupice in Bosnia, Adriatic Metals said in a statement earlier this week.
Adriatic and Sandfire have formed a strategic technical committee to oversee the strategy and implementation of the exploration and development of these projects.
Adriatic Metals is a zinc polymetallic explorer and developer via its 100% interest in the Vares project in Bosnia, which comprises a historic open cut zinc/lead/barite and silver mine at Veovaca and Rupice, an advanced proximal deposit which exhibits exceptionally high grades of base and precious metals, the company said.
Adriatic recently completed a heavily oversubscribed initial public offer, raising $10 million (8.3 million euro), of which Sandfire subscribed for $2 million for a relevant interest of 7.7% in the company.
“Sandfire now the largest shareholder outside Board and management group with a shareholding of 7.7% ,” Adriatic Metals said.
“We welcome Sandfire as a strategic investor and partner of Adriatic as we transition to a publicly listed company,” Geraint Harris, chief executive officer of Adriatic Metals, said.
Securing a high-quality partner with world leading expertise in the exploration and development of base metals projects is a strong endorsement to the quality and potential of Adriatic’s portfolio following an exhaustive period of due diligence, Harris added.
Adriatic’s operations in Bosnia are run by its wholly owned subsidiary company, Eastern Mining d.o.o.