Nordic-focused exploration company Beowulf Mining announced a £250 000 investment in private explorer Vardar Minerals to acquire a 14% stake, sending the London-listed miner’s stock up nearly 7%.
The company has an option to make a further investment and increase its ownership in Vardar, which is active in the prospective Tethys Arc – a region experiencing increased focus following recent porphyry-related copper/gold discoveries.
Vardar has four wholly owned exploration licences over 333.2 km2 in Kosovo and two more under a purchase agreement whereby it will own 85% of the licences.
Vardar’s licences are split in three projects Mitrovica, Viti and Drazna. Mitrovica, situated in northern Kosovo adjacent to the Stan-Terg lead/zinc/silver mine, exhibits alteration typical of porphyry-epithermal systems. Viti is situated in south-eastern Kosovo and is made up of three adjacent licences covering 213 km2. The main exploration target is an interpreted circular intrusive body identified in magnetic data. Viti is also prospective for lithium-boron mineralisation, with a geological setting similar to Rio Tinto's Jadar deposit in Serbia. Drazna is situated on Kosovo's western border, in proximity to the Kiseljak copper/gold porphyry and Draznja lead/zinc mine.
Beowulf CEO Kurt Budge said that the investment in Vardar provided the company, which is currently focused on iron-ore and graphite assets in Sweden and Finland, with exciting new opportunities through diversification of its commodity mix and geography.
"Stepping into a new geography, like Kosovo, only makes sense if you are collaborating with a competent team, which we have in Vardar's founders, Luke Bryan and Adam Wooldridge, with experienced technical and support personnel in Kosovo.
"Chris Davies, nonexecutive director, and I visited Kosovo and Vardar's projects in early October. As a potential investor, we were welcomed by a representative of the government, and by staff at the licensing authority, the Independent Commission for Mines and Minerals, all keen to show Kosovo as an attractive place for companies to invest, explore and develop mining projects,” Budge commented.
Budge would join Vardar’s board of directors as the nominee of Beowulf.
Vardar founders Bryan and Wooldridge also established Kalahari Metals.