Ariana Resources (AAU.L), the company which owns 75% of Western Tethyan Resources, has announced the latter has signed an earn-in agreement for the Slivova gold project in Kosovo, which is currently owned by Avrupa Minerals (AVU.V).
As per the agreement (the terms were originally announced in September of last year), Western Tethyan can earn a 75% stake in Slivova by spending 1.8M EUR on the project within the next three years. An additional 10% stake can be obtained by completing a feasibility study, completing the environmental impact assessment and completing a mining license application. And in case the project does go forward to production, Western Tethyan can obtain full ownership should Avrupa elect to not contribute any money towards the construction of the mine.
Western Tethyan has already spent 275,000 EUR (about C$400,000) on developing a concept study and the base for a Preliminary Economic Assessment. Additionally, an updated resource calculation is currently being prepared. The updated resource should be out later this quarter.
Disclosure: The author has a small long position in Avrupa Minerals and no position in Ariana Resources. Please read our disclaimer.