BHP has entered into an agreement with Mundoro Capital enabling it the right to earn into three emerging copper projects in Serbia.
The porphyry copper tenements are located in and around the Timok magmatic complex in Serbia, which has more than 100 years of copper-gold mining history across five mines.
The tenements in question are the Borsko Jezero project which spans 34.5 square kilometres, the South Timok project which covers 213 square kilometres and the Trstenik project spanning 55 square kilometres.
The Borsko Jezero project lies adjacent to the producing Bor copper porphyry mine and exploration by Mundoro to date has identified several targets, including Target 1.
“The Target 1 system contains elevated copper-gold-arsenic geochemical results indicative of high-sulphidation epithermal-type mineralisation with elevated copper at the bottom of the lithocap suggesting a porphyry source beyond the immediate drill tested area,” Mundoro said in a press announcement.
BHP has the right to earn a 100 per cent interest in each of the three projects by achieving the following milestones:
- Making annual cash payments and operator payments to Mundoro, amounting to $US1.7 million for the three properties over three years
- Incurring exploration expenditures within three years on the three properties amounting to $US7.5 million
- An exploration expenditure commitment relating to drilling by March 2023
BHP can exercise the three separate options for the three projects independently or choose to extend each option by one year by making additional payments and incurring additional exploration expenditure.
Mundoro would retain a 2 per cent net smelter return (NSR) royalty for each option, including development milestone payments of up to $US9 million and annual cash payments until commercial production commences.
“Mundoro welcomes BHP as an exploration partner that recognises the potential of further exploration in the western Tethyan Belt,” Mundoro chief executive officer Teo Dechev said.
“We are looking forward to commencing field exploration at the Timok properties in order to advance targeting and testing of undercover, and near surface, porphyry and related epithermal systems in the Timok region of eastern Serbia.”
BHP has not been shy about its pursuit of more copper, highlighted by its recent takeover of OZ Minerals, which owns the Prominent Hill and Carrapateena copper operations in South Australia.