Avrupa Minerals (AVU.V) which is a European prospect generator has had a few busy weeks. Not only did the company raise C$950,000 in private placements at C$0.10/share, it also teamed up with Callinan Royalties (CAA.V) and appointed a new board member.
Avrupa raised C$950,000 at C$0.10/share from existing and strategic shareholders, whereby Callinan Royalties participated for $350,000. We think it’s extremely encouraging Avrupa is able to raise almost a million in a difficult market like this, and this money will allow the company to continue its exploration efforts in Europe.
The company also closed a strategic partnership with Callinan Royalties, whereby Callinan can invest $150,000 per project to acquire a Net Smelter Royalty on the new properties. Under the terms of the agreement ‘Callinan can choose to fund $150,000 of generative exploration in Spain and Portugal during the first year of the Agreement and, at Callinan’s option, to fund up to $100,000 in each of the two subsequent years. In return for such funding, Avrupa will grant Callinan the option to receive a 0.5% NSR royalty on any new projects acquired as a result of the generative exploration work, or, if Callinan funds an additional $150,000 in further exploration on any of the new projects, an option to receive a 1.5% NSR royalty on such projects.’
We think this is a good agreement as it will allow Avrupa to spend more money on the ground in return for the issue of a relatively limited NSR.
Avrupa has also added Paul Dircksen to its board of directors. Dircksen is currently the CEO of Timberline Resources (TBR.V; NYSEMKT:TLR) which hopes to move its gold project in Montana towards production.
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Disclosure: The author holds a long position in Avrupa Minerals but no position in Callinan Royalties nor Timberline Resources. Please see our disclaimer for current positions.