Amendment to Agreement Secures Metal Rights

RNS Number : 2147B

Adriatic Metals PLC

29 January 2020

 

AMENDMENT TO CONCESSION AGREEMENT SECURES PRECIOUS METAL RIGHTS

HIGHLIGHTS

•   Annex 4 to Concession Agreement with Zenica-Doboj Canton confirms rights to Gold, Silver and Copper.

•   Removes potential requirement to commence Exploitation by May 2020

Adriatic Metals PLC (ASX:ADT, LON:ADT1) ("Adriatic" or the "Company")  is pleased to announce that it has entered into Annexure 4 to its Concession Agreement with the Ministry of Economy for Zenica-Doboj Canton.

The Concession Agreement, entered into by Adriatic's 100% owned subsidiary, Eastern Mining d.o.o, is the primary document granting mineral rights at Veovaca and Rupice. Despite the Federal Mining Code granting mineral rights to all metals and minerals contained in the Reserves Elaborat, which was approved in April 2019 as announced on 4 April 2019, at the time the Concession Agreement was entered into in 2013, the historical information available for the Vares project did not include a sufficient number of assays for gold, silver or copper, and as such the Concession Agreement only referred specifically to lead, zinc and barite.

Since acquiring the Eastern Mining d.o.o. in 2017, Adriatic has identified significant resources of precious metals at both Veovaca and Rupice, as set out in the mineral resource estimates announced on 23 July 2019, and the changes included in Annex 4 remove all legal ambiguity between the two levels of government regarding the mineral rights.

In addition to the above changes, Annex 4 of the Concession Agreement removes the requirement to commence exploitation by May 2020, aligning the procedures contained within the Federal Mining Code, to the commercial terms of the Concession Agreement with the Canton.

These changes also include an amendment to the Minimum Annual Concession Fee from the current level BAM 1.50 (€ 0.77) to BAM 3.90 (€1.99) per tonne Run of Mine (ore into plant), increasing the payment from the date exploitation is granted but prior to commencement of production, to €199,325 per annum from the current level of €76,663 per annum.

Paul Cronin, Adriatic's Managing Director and CEO commented, "The amendments to the Concession Agreement negotiated by our team in Bosnia remove all potential doubt regarding mineral rights and royalty payments on precious metals and better aligns the permitting process in both levels of government, demonstrating a clear determination by Zenica-Doboj Canton to advance the Vares project to production".

For further information please visit  www.adriaticmetals.com,  @AdriaticMetals on Twitter, 

or contact:

Adriatic Metals Plc	Tel: [phone]
Paul Cronin / Emma Chetwynd Stapylton
Blytheweigh (IR/PR Contact)	Tel: [phone]
Camilla Horsfall / Megan Ray

The information contained within this announcement is deemed by the Company to constitute inside ‎information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. The person ‎responsible for arranging the release of this announcement on behalf of the Company is Paul Cronin, Managing Director and CEO.‎

LEI: 549300OHAH2GL1DP0L61‎

ABOUT ADRIATIC METALS

Adriatic Metals PLC (ASX:ADT, LON:ADT1) ("Adriatic" or the "Company") is a dual listed (ASX and LSE) precious and base metals explorer and developer via its 100% interest in the Vareš Project in Bosnia & Herzegovina. The Project comprises a historic open cut mine at Veovača and brownfield exploration at Rupice, an advanced proximal deposit which exhibits exceptionally high grades of base and precious metals. Adriatic's short-term aim is to expand the current JORC resource at high-grade Rupice deposit, as well as conduct exploration on a number of other prospects within the expanded Concession. Adriatic has attracted a world class team to expedite its exploration efforts and to rapidly advance the Company into the development phase and utilise its first mover advantage and strategic assets in Bosnia. 

DISCLAIMER:

News releases, presentations and public commentary made by Adriatic Metals Plc (the "Company") ‎and its directors may contain certain statements and expressions of belief, expectation or opinion ‎which are forward -looking statements, and which relate, inter alia, to interpretations of ‎exploration results to date and the Company's proposed strategy, plans and objectives or to the ‎expectations or intentions of the Company's directors.  Such forward-looking and interpretative ‎statements involve known and unknown risks, uncertainties and other important factors beyond ‎the control of the Company that could cause the actual performance or achievements of the ‎Company to be materially different from such interpretations and forward-looking statements. ‎

Forward-looking statements are statements that are not historical facts. Words such as "expect(s)", "feel(s)", "believe(s)", "will", "may", "anticipate(s)", "potential(s)"and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to statements regarding feasibility, future production, resources or reserves and exploration results. All of such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, but are not limited to: (i) those relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits and conclusions of economic evaluations, (ii) risks relating to possible variations in reserves, grade, planned mining dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be refined, (iii) the potential for delays in exploration or development activities or the completion of feasibility studies, (iv) risks related to commodity price and foreign exchange rate fluctuations, (v) risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental approvals or in the completion of development or construction activities, and (vi) other risks and uncertainties related to the Company's prospects, properties and business strategy. Our audience is cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof, and we do not undertake any obligation to revise and disseminate forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of or non-occurrence of any events.

‎Although the Company has attempted to identify important factors that could cause actual ‎results to differ materially from those contained in forward-looking information, there may be ‎other factors that cause results not to be as anticipated, estimated or intended.  There can be no ‎assurance that such information will prove to be accurate, as actual results and future events ‎could differ materially from those anticipated in such statements.  Accordingly, readers should ‎not place undue reliance on forward looking information and, save as required by the exchange rules of the ASX and LSE or by applicable laws, the ‎Company does not accept any obligation to disseminate any updates or revisions to such ‎interpretations or forward-looking statements.  The Company may reinterpret results to date as ‎the status of its assets and projects change over time with additional expenditure, studies, commodity prices and other ‎affecting circumstances.‎

 

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