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SOFIA (Bulgaria), December 20 (SeeNews) - Australian copper-gold exploration company Raiden Resources said that it has signed an earn-in and option to purchase agreement over the Iglika project in southeastern Bulgaria with local Balkan Mineral Development (BDM), the holder of the exploration rights.
“The Iglika transaction is a further demonstration of the company’s strategy and ability to secure high value projects, while preserving the capital structure. The Iglika project is hosted within the Cretaceous volcanic belt of rocks, that is host to most of the large copper porphyry and epithermal gold deposits in the region. This segment of the Tethyan is attracting interest from many international explorers and major mining companies," Dusko Ljubojevic, managing director of Raiden, said in a statement earlier this week.
The Iglika project covers a surface area of 105 sq km. The Iglika copper-gold skarn deposit is located on the permit.
"The company believes that the permit is highly prospective for further discoveries, including porphyry and epithermal styles of mineralisation," Ljubojevic added.
Following the signing of the option agreement, Raiden has 90 days to execute due diligence over the Iglika permit and BMD.
Under the terms of the option agreement, Raiden can earn an interest of up to 100% in the Iglika project at any time during the period between 2020 and 2021 through the acquisition of a 100% shareholding Interest in BMD.
Raiden can buy all of the shares of BDM in three stages. First, the company can earn a 1% shareholding interest, as it is providing to BMD a 48,200 Australian dollars ($27,330/24,640 euro) financing for ongoing administrative fees required to keep the Iglika license in good standing.
Raiden can then boost its interest by an additional 50% by expending not less than 300,000 euro of exploration expenditure before December 31, 2020, starting from January 1, 2020.
Finally, Raiden can increase its interest by an additional 49% by expending not less than a further 600,000 euro.
(1 euro = 1.60741 Australian dollars)