Avala Resources has entered into an agreement to transfer to Queensland Minerals , a group of mineral licences located in Serbia in consideration for a 2% NSR royalty and reimbursement of the costs spent by the Company on the licences, which amount to $495,000. The group of licences is comprised of four near contiguous exploration licences known as the Lisa, Kotraza, Kraverica and Dubac licences covering an area of 320 km2 in central-southern Serbia. Exploration activities conducted on the project consisted mainly of high density stream sediment sampling, soil samples, rock chip samples and channel sampling. No drilling has been conducted on the project in recent times.
The closing of the transaction between the Company and Queensland is subject to certain conditions including the approval of the TSXV as the Company and Queensland have common directors and officers reports Avala.