AVPMF - Avrupa Minerals Completes Definitive Agreement with Western Tethyan Resources to Option Out the Slivova Gold Project Kosovo
(TheNewswire)
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The Definitive Agreement (“DA”) outlines a path towards potentialgold production from the Slivova deposit;
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Western Tethyan Resources (“WTR”) completed a robust Due Diligence(“DD”) review, a Concept Study, and continues to work on aPreliminary Economic Assessment (“PEA”), including a metalsresource update for the Slivova deposit;
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WTR can earn-in to 85% of the Slivova Project.
Vancouver, BC – TheNewswire - May 10, 2023 – Avrupa Minerals Ltd. (TSXV:AVU) is pleased to announce that it has entered intoa definitive option agreement with Western Tethyan Resources toadvance theSlivova Gold Project, located in the productive Vardar Mineral Trendin the Republic of Kosovo, to a possible mining solution. WTR canearn-in to 75% of the Project by funding exploration and developmentfor Euro 1,800,000 over three years, and then a further 10% by makingcertain milestone and success payments, producing an EnvironmentalImpact Statement, delivering a Feasibility Study, and completing aMining License application.
To date, WTR has spent more than Euro 275,000 for DueDiligence, development of a Concept Study, and continuing work on aPEA. WTR is a private exploration company based in London andPrishtina, Republic of Kosovo, and is 75% owned by London AIM-listedAriana Resources (“Ariana”).
Paul W. Kuhn, President and CEO ofAvrupa Minerals, commented, “Western Tethyan has already madesignificant progress towards defining a possible mining solution atSlivova. We are truly excited about the positive progress in theongoing PEA and Concept Studies, as well as for getting started in anew phase of exploration and resource definition. WTR is working ona new resource update, and we expect information later thisquarter.”
Mentor Demi, ManagingDirector of Western Tethyan Resources , added,“Alongside an aggressive exploration programme throughout the WestTethyan Belt, we are actively seeking acquisition opportunities.Acquisition of the Slivova gold deposit is a step towards buildingWestern Tethyan Resources into a development company, as well, and theSlivova Mine as the first modern mine in Kosovo since the1920’s.”
Dr. Kerim Sener, Managing Director of ArianaResources, stated, “The completion of thisagreement formalizes a process we had already embarked upon in Marchfollowing the successful completion of the Project due diligence. Weare already nearing completion of a revised Mineral Resource Estimatefor Slivova, and we look forward to announcing this work in duecourse.
In addition, furtherwork has been underway at the local community level in order toincrease awareness of the project and its merits. We are investigatingopportunities to deliver a low-impact mining project which aims toachieve a new standard for mining in Kosovo and potentially become astrategic hub of operations for the company in the country.”
About Slivova
The Slivova exploration license covers 30.51km 2 of prospectable land surrounding the Slivova gold deposit. Thelicense is valid for 7 years from May 2022. Outside of the deposititself, much of the property is under-explored. Avrupa commissionedan initial NI 43-101 resource study in 2016 and reported an indicatedmineral resource of 640,000 mt @ 4.8 g/t gold and 14.68 g/t silver fora total of 98,700 ounces of gold and 302,000 ounces of silver. Slivova Maiden Resource, 2016
WTR is currently updating the Mineral Resource Estimate(“MRE”) to JORC standards, and Avrupa will follow suit bytransforming the JORC estimate to a NI 43-101 resource estimate. Thecompanies expect to be able to report the new MRE during Q2 2023. The new evaluation will encompass results from drilling subsequentto the 2016 report, re-interpretation of previous geologicalinformation from surface and trench mapping and sampling, and thoroughreview of all historic core.
As noted in a previous AVU news release, AVU and WTR agree to Proceed , thereare additional nearby and distal targets within the new Slivovalicense. There are known zones of mineralization close to the mainSlivova deposit that WTR will need to drill, and we can expect upgradework on a number of distal targets around the license in the comingfield season.
Figures 1 and 2. Maps showing location of Slivova in Kosovo, along with targetareas to be upgraded. New license is shown as a red polygon. Thenames in northwest quadrant are historic Trepça base metalmines.
Terms of the Agreement
Under the terms of the Definitive Agreement, WTR willhave the right to acquire, in multiple stages, up to 85% of theSlivova project, by completing a series of exploration and developmentmilestones and making staged payments to AVU.
On Closing
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Euro 35,000 cash payment upon signing the DefinitiveAgreement on/about March 1, 2023. (Completed)
Earn-In Phase
Stage 1:
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Euro 30,000 cash payment on September 1, 2023;
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If WTR elects to enter the Definitive Agreement, itwill invest Euro 800,000, during first two years from the effectivedate (minimum of Euro 150,000 must be spent by September 1, 2023, postDD Phase) for exploration, drilling, baseline environmental and socialsurveys, landowners, etc., for 51% of the Project. (Underway)
Stage 2:
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After completion of Stage 1, during the third year fromthe Effective Date, WTR will invest Euro 1,000,000 for NI 43-101resource estimation, commencement of full Environmental ImpactStatement (“EIS”), etc., for 75% of the Project.
Stage 3:
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During fourth and fifth year from the Effective Date,WTR must complete the EIS, Feasibility Study (“FS”), and MiningLicense application, for 85% of the Project.
Stage 4:
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WTR completes success payments to previous JV partner,Byrnecut International Ltd., accordingly:
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Euro 125,000 in cash within 30 days of the first tooccur of: 1) Completion of a positive FS (minimum 15% IRR) or; 2)Avrupa or related party making a decision to proceed with developmentof a mining operation within the license area;
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Euro 125,000 within 30 days of issuance of a mininglicense for the Project;
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Euro 125,000 within 30 days of commencement of mineconstruction within the license area;
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100 troy ounces of gold within 30 days of commencementof commercial production (“CCP”), then increasing by 75 troyounces per year until and including the third anniversary ofcommercial production when 325 troy ounces will be delivered.
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Avrupa participates in the mine build or dilutes to 1%NSR.
Western Tethyan ResourcesLtd. is a UK-registered, mineral exploration anddevelopment company focused on South East Europe. The company has astrategic alliance with Newmont Corporation and Ariana Resources andis currently focused on exploration for majorcopper-gold deposits in the Lecce Magmatic Complex and Vardar Belt inKosovo. The company is assessing several other exploration projectopportunities across Eastern Europe, targeting major copper-golddeposits across the porphyry-epithermal transition.
Ariana Resources plc is an AIM-listed mineral exploration and development companywith an exceptional track-record of creating value for itsshareholders through its interests in active mining projects andinvestments in exploration companies. Its current interests includegold production in Turkey and copper-gold exploration and developmentprojects in Cyprus and Kosovo.
Avrupa Minerals Ltd. is a growth-oriented junior exploration and developmentcompany directed to discovery of mineral deposits, using a hybridprospect generator business model. The Company holds one license inPortugal, the Alvalade VMS Project, presently optioned to SandfireMATSA in an earn-in joint venture agreement. The Company now holdsone exploration license covering the Slivova gold prospect in Kosovo,and is actively advancing four prospects in central Finland throughits in-process acquisition of Akkerman Finland Oy. Avrupa focusesits project generation work in politically stable and prospectiveregions of Europe, presently including Portugal, Finland, and Kosovo. The Company continues to seek and develop other opportunities aroundEurope.
For additional information, contact Avrupa Minerals Ltd. at1-604-687-3520 or visit our website at www.avrupaminerals.com .
On behalf of the Board,
Paul W. Kuhn, President & Director
This news release was prepared byCompany management, who take full responsibility for its content. Paul W. Kuhn, President and CEO of Avrupa Minerals, a LicensedProfessional Geologist and a Registered Member of the Society ofMining Engineers, is a Qualified Person as defined by NationalInstrument 43-101 of the Canadian Securities Administrators. He hasreviewed the technical disclosure in this release. Mr. Kuhn, the QP,has not only reviewed, but prepared and supervised the preparation orapproval of the scientific and technical content in the newsrelease.
Neither TSX Venture Exchange nor itsRegulation Services Provider (as that term is defined in the policiesof the TSX Venture Exchange) accepts responsibility for the adequacyor accuracy of this release.
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