Zinc polymetallic explorer and developer Adriatic Metals PLC (Adriatic) has established a new cornerstone investment and strategic relationship with leading Australian copper producer Sandfire Resources NL (Sandfire). The company has recently completed a heavily oversubscribed initial public offer (IPO) raising US$10 million, of which Sandfire subscribed for US$2 million for a relevant interest of 7.7% in the company.
Sandfire and Adriatic have also entered into a strategic partnership agreement which will enable Adriatic to benefit from Sandfire’s significant technical expertise to develop its Veovaca and Rupice Projects in Bosnia and Herzegovina as well as further strategic support as the company moves to unlock the potential from its first mover status and regional exploration portfolio.
Sandfire provides strong endorsement of the company’s prospects via a cornerstone investment of US$2 million in Adriatic’s recent IPO Adriatic and Sandfire enter into a strategic partnership agreement to allow the company to benefit from Sandfire’s technical and strategic expertise via the formation of a technical collaboration committee and strategic shareholder rights Sandfire now the largest shareholder outside Board and management group with a shareholding of 7.7%.
Adriatic’s CEO, Geraint Harris, commented: “We welcome Sandfire as a strategic investor and partner of Adriatic as we transition to a publicly listed company. 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.”
The strategic relationship creates an important collaboration between the company and Sandfire that will allow the company to benefit from Sandfire’s technical and strategic expertise. It is anticipated that this will assist the company to fast-track the feasibility and development of the company’s Veovaca and Rupice Projects. Adriatic and Sandfire have formed a strategic technical committee to oversee the strategy and implementation of the exploration and development of these projects.
As part of the strategic relationship and subject to the waiver or satisfaction of any applicable listing rules of the ASX, Sandfire will hold an anti-dilution right that shall, subject to a number of conditions, enable it to maintain its interest at the Strategic Shareholding. Sandfire shall also be entitled to nominate one director to the Board of the company as a non-executive director should Sandfire’s relevant interest reach and be maintained in excess of 10%.
Read the article online at: https://www.globalminingreview.com/finance-business/01052018/adriatic-and-sandfire-partner-to-fast-track-development-of-veovaca-and-rupice-projects/