January 28 (SeeNews) - Bosnia's Federation energy ministry granted UK-based company Adriatic Metals an exploitation permit for the Veovaca open-pit mine, some 50 km north of Sarajevo, the company said on Thursday.
The permit marks the beginning of the exploitation period for the Vares project, for which the company was awarded a concession of up to 30 years, Adriatic Metals said in a press release.
The Vares project comprises a historic open cut zinc/lead/barite and silver mine at Veovaca and Rupice, an advanced proximal deposit that exhibits exceptionally high grades of base and precious metals.
The company expects to receive an exploitation permit for Rupice mine in the second quarter of the year.
In September, Adriatic Metals said that it will pay a concession fee of 481,800 marka ($298,120/246,340 euro) to the Zenica Doboj Canton, of which 70% is expected to directly benefit the Vares municipality.
The receipt of this permit also enables Adriatic to complete the main mining project for the Veovaca open pit mine, flotation plant, and tailings management facility at a detailed engineering level for the start of construction in the third quarter of 2021, the company said.
According to Bosnian news portal Klix, the company has already invested $20 million in the project and plans to invest another $180 million.
Adriatic Metals is an ASX-listed zinc polymetallic explorer and developer via its 100% interest in the Vares project. The company is present in Bosnia via its wholly-owned subsidiary Eastern Mining, which runs the project.
Zenica-Doboj Canton is one of ten cantons that make up Bosnia's Federation entity. The Federation is one of two autonomous entities that form Bosnia and Herzegovina. The other one is the Serb Republic.
(1 euro = 1.95583 marka)