Copper miner Sandfire Resources has formed a strategic relationship with Adriatic Metals, which has listed on the Australian Securities Exchange (ASX).
Adriatic raised $10 million through its initial public offering (IPO), of which Sandfire invested $2 million to become its largest shareholder, outside of board and management, with a 7.7 per cent stake.
The partnership will enable Adriatic to benefit from Sandfire’s technical expertise to develop the Veovaca and Rupice projects in Bosnia & Herzegovina, while also for strategic support to unlock potential from its exploration portfolio.
Adriatic expects the relationship will allow it to fast-track the feasibility and development of the projects. The companies have setup a strategic technical committee to oversee the strategy and implementation of the exploration and development.
Geraint Harris, Adriatic chief executive officer, welcomed Sandfire as an investor and partner as the company transitioned to a publicly-listed company.
“Securing a high-quality partner with world-leading expertise in the exploration and development of base metals projects is a strong endorsement to the quality and potential of Adriatic’s portfolio following an exhaustive period of due diligence,” Harris said.
“This also validates the prospectivity of our licence areas to host further discoveries as we commence our 2018 exploration program.”
Sandfire is entitled to nominate one member to the board of Adriatic as a non-executive director.