Canada-based capital pool company Wangton said on Tuesday it entered into a letter of intent to acquire the entire capital of Serbian company Taor, owner of two geological exploration licences in the Balkan country.
Under the terms of the proposed deal, Wangton will acquire all of the shares of Taor from its owner, Balkan Minerals Limited, for 8 million own common shares and up to 17 million additional shares on meeting certain milestones, the Canadian company said in a statement.
“Completion of the transaction is subject to a number of conditions, including, but not limited to satisfactory due diligence and execution of a definitive agreement. There can be no assurance that the deal will be completed as proposed or at all,” Wangton said.
The two exploration properties owned by Taor cover approximately 100 sq km and are located near the historical mining area of Raska. Both properties are supported by power, water, railway, roads and have access to a skilled workforce, the company added.
The historical data from previous exploration programmes on the properties shows not only the presence of primarily hydrothermal mineralisation of lead and zinc localised in veins, with other associated metals such as gold, silver and copper but also widespread occurrences of epithermal gold and silver mineralisation.
Krizevak, and Sastavci, two mines formerly producing lead and zinc mines are surrounded by, but not included in, Taor’s exploration licence areas. Taor has submitted applications to the Serbian Ministry of Mining and Energy to resume exploration and production at these mines, previously opened and operated by the government of the former Yugoslavia, Wangton noted.