Balamara Resources Limited is pleased to advise that it has established a strategic partnership with AIM-listed resource company Centurion Resources Limited to support the continued development of its Balkans strategy, in particular its flagship Montenegro Base Metals Project. As part of the arrangement, Balamara has agreed to sell a minority equity position in its Central European subsidiary, North Mining Doo, which is the 100% owner of the Montenegro Project. Under the terms of the agreement, Centurion will be issued with new shares giving it a 10% holding in North Mining for a total consideration of £375,000 ($575,000). Balamara will retain the remainder of the shares in North Mining and control over the Monty Project, and will continue to progress the asset towards development.

The Company recently announced on 29 January 2013 a revised JORC resource for Monty in which 53% of the Inferred Resource at the main Brskovo deposit was converted to the Indicated category, with further drilling planned in 2013 at two other two deposits, Zuta Prla and Visnjica, following the success of the 2012 in-fill drilling programme. Centurion is a recently listed resource company based in London that has an experienced board and management team. Alastair Clayton, who is currently a non-executive Director of Balamara, is the CEO of Centurion and moving forward he will become more actively involved in the operational aspects of the Monty Project.

Mr Clayton was formerly a board member of Namibian-focussed uranium company Extract Resources which was sold in 2012 for $2.2 billion to Taurus, a wholly-owned subsidiary of China Guangdong Nuclear Power Company. Balamara believes there is significant strategic value by bringing Centurion into North Mining to participate in the ongoing development of the Monty Project, and Centurion’s involvement will add experience as well as provide further visibility for the Monty Project in the UK market.
Balamara’s Managing Director Mike Ralston said: “This deal is consistent with our strategy of creating opportunities for strategic partnerships which can help us to unlock maximum value from all of the assets within the Company’s portfolio. “We are delighted to have secured Centurion’s involvement with our Balkans assets as this will provide additional exposure for the Monty Project in Europe. We look forward to working with Centurion to identify all potential avenues to add value to this asset, and potentially others within the region.”