Copper producer Sandfire Resources has acquired a 7.7% interest in Adriatic Metals following the completion of a subscription of shares.
Adriatic Metals recently raised A$10m via an initial public offer (IPO), which saw Sandfire subscribe for a total of A$2m.
Both companies also signed an agreement that is expected to enable Adriatic to leverage Sandfire’s technical expertise to accelerate the development of its Veovaca and Rupice projects in Vares, Bosnia and Herzegovina.
The partners have formed a strategic technical committee as part of the initiative, which will supervise the implementation of the projects’ exploration and development.
The partnership will also provide Adriatic with additional strategic support as it endeavours to unlock the potential of its first mover status and regional exploration portfolio.
Adriatic Metals CEO Geraint Harris 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.
“This also validates the prospectivity of our licence areas to host further discoveries as we commence our 2018 exploration programme.
“Sandfire brings a tremendous depth of experience in these styles of mineralisation, which will enable us to further understand this under-explored and emerging base metals province of Central Europe.”
Adriatic is primarily engaged in zinc polymetallic exploration and development via its 100% interest in the Vares project.
The Rupice prospect is a near-surface sedimentary-style base metal deposit containing high grades of Zn, Pb, Ag, Au, BaSO4 and Cu, while the Veovaca deposit features a JORC resource of approximately 4.4 million tonnes (Mt).