Beowulf Mining has signed an agreement to acquire shares worth a 14% interest in Vardar Minerals in exchange for investment in the company’s exploration licences in Kosovo.
Under the terms of the deal, Beowulf will make an initial investment of £250,000 in cash for the stake. The agreement includes an option to increase the stake in the company by making an additional investment.
The investment will offer Beowulf exposure to several porphyry-related copper, gold and base metal targets situated in the prospective Tethys Arc, where significant discoveries were made in the last decade.
Vardar has a 100% interest in four exploration licences in Kosovo. In addition, the company reached an agreement to acquire an 85% stake in two more licences. The combined area of the six licences covers 333.2km².
The licences are made up of the Mitrovica, Viti, and Drazna projects.
Beowulf Mining CEO Kurt Budge said: “Stepping into a new geography, like Kosovo, only makes sense if you are collaborating with a competent team, which we have in Vardar’s founders, Luke Bryan and Adam Wooldridge, with experienced technical and support personnel in Kosovo.
“With our initial investment in Vardar, we have taken a modest step into Kosovo, creating diversification for the company, in commodity mix and geography, and potential upside with additional exploration.”
Located in northern Kosovo adjacent to the significant Stan-Terg lead-zinc-silver mine, the Mitrovica project is prospective for high-sulphidation gold, porphyry copper-gold and vein and replacement-related base metal targets.
Viti comprises three adjacent licences covering 213km² and exhibits alteration typically associated with porphyry systems. Besides, several copper occurrences and stream sample anomalies were reported near and within the licence areas.
Drazna is situated on Kosovo’s western border and has several alteration centres associated with porphyry/epithermal systems.
Vardar Minerals will use the investment to meet the costs for its exploration programme and general working capital requirements.