Australian exploration company Apollo Minerals has agreed to acquire Edelweiss Mineral Exploration, a Serbian company that owns the Belgrade Copper Project in Serbia.
Apollo and its UK subsidiary Apollo Serbia (UK) have signed a conditional binding term sheet with Ropa Investments to acquire 100% issued shares of Edelweiss.
Under the terms of the binding agreement, Apollo will issue 30,000,000 fully paid ordinary shares and 10,000,000 options exercisable at A$0.05, expiring within three years from issue.
The Australian company will also issue 10,000,000 unlisted options exercisable at A$0.075 expiring three years from issue, and 20,000,000 deferred shares, subject to certain conditions.
Edelweiss will grant a 2% net smelter royalty on future production over the licences and licence applications.
The acquisition is expected to be completed within two months, subject to completion of due diligence and receipt of all necessary regulatory, ministerial, or third-party approvals.
If the conditions are not satisfied before 15 December 2023, either party may give notice to the other party that the agreement is terminated.
Apollo Minerals managing director Neil Inwood said: “Apollo Minerals is thrilled to secure an excellent portfolio of European copper exploration ground within Serbia’s renowned Carpatho-Balkanian Metallogenic Province.
“Reservoir Minerals, who put the project together, discovered the 20 million tonne Cukaru Peki copper deposits at Bor and consequently did not focus on the highly prospective ground we have acquired.
“Serbia is currently Europe’s second-largest copper producer and I am convinced there are world-class sedimentary-hosted copper discoveries to be made in the region.”
The Belgrade Copper Project comprises Studena, Donja Mutnica and Kopajska Reka prospects that cover a total of 202km2 area.
It hosts four mining licences that are highly prospective for copper-silver (Cu-Ag) mineralisation.
Apollo said that the copper project complements its existing Gabon base metals focus in the province-scale Kroussou Zinc-Lead project.
Also, the transaction will provide an opportunity to deliver further exploration discovery and diversify commodity exposure to the company’s geological team.
The Studena and Donja Mutnica prospects are located in eastern Serbia within the Ridanj-Krepoljin metallogenic zone which extends over 200km in a northwest-southeast direction.
They were located west of the renowned Bor metallogenic region that hosts high-quality copper porphyry deposits, within Serbia’s Carpatho-Balkanian Metallogenic Province (CBMP).
As part of the acquisition of Edelweiss, Apollo has also acquired the Lisa licence application, which is considered prospective for gold and antimony mineralisation.
Inwood added: “We have already been on the ground and were impressed with the modern infrastructure, local mining knowledge, and highly skilled local workforce.
“This acquisition complements our existing zinc-lead base metals focus in Gabon while presenting a positive diversification into copper.
“With minimal dilution to existing shareholders and a compelling copper prospect in a favourable jurisdiction, the proposed Edelweiss acquisition demonstrates our focus on value creation through acquisition, exploration, and discovery.”
