PERTH (miningweekly.com) – ASX-listed Apollo Minerals has struck a conditional agreement to acquire Edelweiss Mineral Exploration, which holds the Belgrade copper project in Serbia.

The project consists of four licences covering 202 km², and forms part of the Serbian copper exploration project portfolio held by Reservoir Minerals, which was acquired by TSX-listed Nevsun Resources in 2016 for $365-million, and was subject to a subsequent $1.4-billion takeover by Zijin Mining Group in 2018.

The project is located 80 km from Zijin’s Bor copper mines.

“Apollo Minerals is thrilled to secure an excellent portfolio of European copper exploration ground within Serbia's renowned Carpatho-Balkanian Metallogenic Province. The Belgrade copper project has a compelling exploration thesis which the team are extremely excited to test,” said Apollo MD Neil Inwood.

“Reservoir Minerals, who put the project together, discovered the 20-million-tonne Cukaru Peki copper deposits at Bor and consequently did not focus on the highly prospective ground we have acquired. Serbia is currently Europe's second-largest copper producer and I am convinced there are world-class sedimentary-hosted copper discoveries to be made in the region. We have already been on the ground and were impressed with the modern infrastructure, local mining knowledge, and highly skilled local workforce.

“This acquisition complements our existing zinc/lead base metals focus in Gabon, while presenting a positive diversification into copper. With minimal dilution to existing shareholders and a compelling copper prospect in a favorable jurisdiction, the proposed Edelweiss acquisition demonstrates our focus on value creation through acquisition, exploration and discovery,” said Inwood.

Under the terms of the agreement, Apollo will issue 30-million of its own shares, as well as 10-milion unlisted options, exercisable at a price of 5c each and with a three-year expiry date, as well as 10-million unlisted options that are exercisable at 7.5c each and with a three-year expiry date.

A further 20-million deferred shares will be issued on the announcement of a Joint Ore Reserves Committee-compliant resource of at least 12-million tonnes, at a grade of 2% copper or equivalent, within five years of the agreement, with the vendor to also receive a 2% net smelter royalty on future production from Edelweiss over the licences and licence applications.