Mineral explorer Arian Resources has agreed to acquire the high-grade fully-permitted 290ha Perlat copper-gold-silver-cobalt exploration permit in Albania.
Under the terms of the agreement, Arian will acquire a 100% stake in Balkan Resources, which owns the permit from Balkan Resources Canada through a series of shares and cash payments to Balkan. The agreement is subject to regulatory approvals.
Located 80km north of the capital Tirana, the permit is located within the productive Mirditë and Pukë districts in northern Albania.
The project is permitted for mining for 25 years, with a ten year renewal option.
Arian has acquired an additional exploration license for the 2,300ha adjacent to the property, according to the results of geophysics.
An extensive drill programme commenced at Perlat in 1975, while mining on the northern portion of the Perlat deposit began in 1979 and continued until 1991. It was decommissioned in 1997.
As per the work commitments, Arian should spend $472,100 on the project by 1 August this year, $3.44m by 1 August 2015, $9.29m by 1 August 2016. In addition, Arian will extract 20,000t of ore between 1 August 2015 and 31 July 2016.
Upon commercial production Balkan will receive a 2.5% net smelter return for the duration of the life of the mine.
Arian president and CEO Zahir Dhanani said the extension of this past producing mine has benefited from a massive drill programme that has defined a substantial zone of mineralisation. The company's immediate target is to use the historic data to produce a NI 43-101 report.
"In addition, we have applied for a substantial exploration permit adjacent to the Perlat project, which has the potential to host additional mineralisation," Dhanani said.