UK-based Mineco, which has mining operations in the Western Balkans, said on Tuesday it has acquired Serbian sector player Vavrina Resources, thus taking the first steps towards opening its fourth lead and zinc mine in Serbia.
Vavrina Resources is the owner of the land needed for the opening of a mine and the production of concentrate in the Raska district in southern Serbia, which it acquired as part of the liquidation process of the former Suva Ruda mine, Mineco said in an e-mailed statement.
No financial details on the transaction were disclosed.
According to data from the Serbian business register, the previous owner of the capital of Vavrina Resources was UAE-based Lifestone Mineral Holdings.
“The next steps concern obtaining the right to prospect on our land, and the sooner we resolve this, the sooner we will be able to contribute to the economic growth of Raska, by resuming the production of non-ferrous metal ore concentrate produced by the Suva Ruda mine,” Mineco director Bojan Popovic said.
The plots of land were sold to Vavrina Resources by Dutch-based lender ATB Bank, one of the largest creditors of the former owner of the Suva Ruda mine. ATB Bank held the plots as part of the collateral for a 25 million euro loan that was never repaid, Mineco said.
Mineco manages the Bosil-Metal mine in Serbia’s Bosilegrad municipality, as well as two other lead and zinc mines in the country – Rudnik (near Gornji Milanovac) and Veliki Majdan.
Elsewhere in Southeast Europe (SEE), Mineco is active in Bosnia and Herzegovina where it manages the Gross lead and zinc mine, conducts exploration works in the old antimony mine near Novo Gorazde, and started production at the cerussite mine near Olovo in 2017.
Source: www.seenews.com
