August 24 (SeeNews) - Vancouver-based Tirex Resources said it is arranging $1 million (886,350 euro) in financing for its gold project Romovista in Kosovo for which the company holds a seven-year exploration license.
The financing is by way of a non-brokered private placement through the issuance of 10 million units at $0.10 per unit, the company announced on Tuesday both on its website and on Canada's Stockwatch.
"The proceeds will be used for the payment of certain outstanding short term obligations, general working capital and for field work at the Romovista Gold-Silver-Zinc Property," Tirex said in a statement.
Tirex plans to complete geological mapping, soil and rock sampling, and a geophysical survey to define drilling targets aiming to confirm the presence of potentially economic mineralization in Romovista property.
The Romovista property which covers an area of 4,141 hectares is located in close proximity with the first Kosovo's gold discovery, Slivovo, which is controlled by Australian Byrnecut International Limited and Portuguese Avrupa Minerals and with Artana mine, a lead-zinc-silver deposit containing some of the highest silver grades in Kosovo.
Under the terms of the exploration agreement, Tirex has the option to earn an 80% interest on the Romovista property by spending 2.0 million euro within five years and paying a total of 100,000 euro to the claim owner within three years after signing of the agreement. Tirex can earn 100% interest by funding the development of the project and the interest of the claim owner will be converted to 2.5% net smelter royalty which Tirex can buy for a total of 2.5 million euro. The seven-year exploration agreement, which could be further extended, was signed in the beginning of May.
Tirex Resources was formed to conduct mineral exploration and development activities in Albania. It is operational in the Mirdita and Rehova regions.
($=0.8864 euro)