AVRUPA MINERALS LTD. (TSXV:AVU) company history: the story so far

History

Avrupa Minerals, a Europe-focused explorer, relied on partners to fund its Portuguese and Kosovan projects, ending its record in April 2018 with a non-binding deal to option out three more Portuguese licences.

2015-2016: Kosovo drilling and a small raising

Avrupa Minerals is a Vancouver-based explorer that finds projects and brings in partners to pay for the drilling. Its main success in this period was the Slivovo gold project in Kosovo, funded by partner Byrnecut International. In July 2015 drilling hit 30 m at 6.92 g/t gold, and Byrnecut completed its 51% earn-in. By September, hole SLV018 returned 125 m at 6.91 g/t gold, and Byrnecut hired Mining Plus to start a resource model. Later results included 97 m at 7.94 g/t gold, and by November Byrnecut had spent €2 million and reached a 75% earn-in. A nearby target, Brus, gave weak results.

Elsewhere the record was mixed. Antofagasta had earned 51% of the Alvalade copper joint venture in Portugal, but later filings list Colt Resources as the partner, without explanation. Lowell Copper left the Alvito project in Portugal in November 2015, and Avrupa planned to market it again. In 2016 Avrupa raised $1,354,700 by selling 13,547,000 units at $0.10, each with a warrant at $0.15 to July 4, 2019. That left 69,306,797 shares outstanding, up from 35.0 million in 2013. Blackheath also came to hold 75% of the Covas tungsten venture, with Avrupa keeping 25% and operating it.

2017-2018: Stepping back and a new Portugal deal

In March 2017 Byrnecut delivered its Slivovo study and earned 85% of the Kosovo project company, leaving Avrupa with 15%. Avrupa chose not to fund its share, about C$1.25 million of a C$8.3 million drill program, so its stake will dilute. If it falls below 10%, it becomes a 2% royalty on the mine's metal sales. Funding in 2016 totalled $2,016,200, from the July placement and a warrant exercise.

In April 2017 Avrupa said Colt was in default on Alvalade, having missed two periods of required spending. Avrupa said it could buy the project back or dilute Colt, and no outcome was reported.

On March 5, 2018, Avrupa signed a non-binding letter of intent with a subsidiary of an unnamed international mining company. It covers three Portuguese licences: Alvalade, Marateca and Mertola. The partner would spend EUR 13 million (about C$20.3 million) over three years for 51%, with options to reach 60-75%. Final agreements were still being negotiated. Avrupa also arranged a $500,000 placement of 6.25 million units at $0.08, with warrants at $0.12, and granted 1.8 million options at $0.10. The March 26 release said the placement was increased and closed, but its final size is unknown. The Alvito project was listed as optioned to OZ Minerals. As of April 11, 2018, Avrupa held eight licences: five in Portugal, two in Kosovo and one in Germany.

Written from the 9 story beats below (2015 to 11 Apr 2018), which come from the company's own announcements and filings.

Beat by beat

The events that changed the company's story, in plain English, each written against everything known about the company at the time. The dot shows whether it was good, bad or neutral for shareholders.

shares on issue market cap (log scale)

201886.9m shares · C$7.8m market cap

11 Apr
Avrupa signed a non-binding letter of intent (March 5, 2018) with a subsidiary of an unnamed international mining company to option out three Portugal Pyrite Belt licences (Alvalade, Marateca, Mertola). The partner would fund a first-stage earn-in of EUR 13 million (about C$20.3 million) over three years for 51%, with further steps to 60-75% depending on the licence; final agreements were still being negotiated. This follows the Alvalade partner Colt's default and the plan to option out Marateca, though the filing does not mention Colt or say what happened to its interest. Avrupa also arranged a $500,000 private placement of 6.25 million units at $0.08, each with a warrant at $0.12 for two years, announced as fully subscribed on March 16 and, per the March 26 release title, increased and closed (that release's text was not provided, so final size and closing terms are unknown). It also granted 1.8 million stock options at $0.10 for five years. Proceeds are for exploration in Portugal and Kosovo and working capital. The releases list the Alvito option as being with OZ Minerals (replacing the earlier plan to find a new partner after Lowell Copper left); its terms are not given. Becau
capital raising announcement
86.9m shC$7.8m

2017

28 Apr
Avrupa says its Alvalade JV partner, Colt Resources, is in default of the earn-in agreement and has missed two periods of required exploration spending. This explains why Colt appeared as partner in 2015 boilerplate in place of Antofagasta, though the filing does not itself explain that transfer; it mentions only an assignment agreement with 'the former partner' on which Colt is also in default. Avrupa says it can now re-purchase the project or dilute Colt, and is working to make sure Colt's failures do not cost it the licence; no outcome is given yet.
joint venture update
27 Mar
Byrnecut delivered the Slivovo Gold Project Study and so earned 85% of Peshter Mining JSC, leaving Avrupa with 15%. Avrupa accepted the study but decided not to fund the proposed 3-phase, C$8.3 million, 30,000 m drill program (its share would have been about C$1.25 million), so its stake will be diluted as Byrnecut spends, and if it falls below 10% it converts into a 2% net smelter royalty. The January 2017 review of 2016 also says Avrupa plans to amend the Alvalade JV situation and option out Alvito and Marateca, and that Alvalade's partner could not fund its commitments. 2016 funding of $2,016,200 came from the July placement and a September warrant exercise.
drilling progress report

2016

24 Oct
Avrupa closed a financing of $1,354,700 by issuing 13,547,000 units at $0.10, each with a warrant to buy a share at $0.15 until July 4, 2019, leaving 69,306,797 shares outstanding (up from 35.0 million in 2013). Other July-August 2016 releases report that Byrnecut-funded work on a pre-feasibility study at Slivovo is under way (due by April 10, 2017, and with Byrnecut's earn-in to 85% depending on it), and that Blackheath now holds 75% of the Covas tungsten JV, with Avrupa holding 25% and operating it. Later releases in the bundle were not provided.
capital raising announcement
21 Mar
Two November 2015 releases. Partner Byrnecut International has now spent €2 million at the Slivovo gold project in Kosovo and completed a 75% earn-in (up from the 51% reached earlier); the final 2015 drill holes include 74 m at 6.02 g/t gold in SLV037 and 14 m at 11.11 g/t in SLV043, and Byrnecut is finishing a JORC-compliant resource estimate for Peshter Gossan (the estimate Mining Plus was engaged to start). The nearby Brus target gave weak results, so more work is needed there. Separately, Lowell Copper terminated its June 2015 earn-in on the Alvito project in Portugal after funding about €137,000; Avrupa says it plans to market the project. The filing's boilerplate still lists Colt Resources as the Alvalade partner.
drilling result

2015

24 Nov
A September-October 2015 bundle. Avrupa extended 7,990,000 warrants (originally expiring October 4, 2015, exercisable at $0.25) to October 4, 2017, subject to TSX-V approval. On September 21 it reported further Slivovo drill results, e.g. 97 m at 7.94 g/t gold in SLV027 and 24 m at 11.59 g/t in SLV025, with the Phase 3 drilling nearing completion (44 holes, 4,927 m since Q4 2014) and an initial resource calculation by Mining Plus expected mid-Q4. The September boilerplate lists the Alvalade JV as being with Colt Resources rather than Antofagasta, which differs from earlier filings and is unexplained in the text provided. The headline October 26 release (120 m at 5.37 g/t gold) and the October 28 release were not included in the text provided.
drilling result
24 Sept
Filed in September 2015 but covering December 2013 news releases. Antofagasta has earned its 51% of the Alvalade copper JV in Portugal by spending US$4.3 million, and can earn a further 24% (75% total) by delivering a feasibility study by December 1, 2018; it has already sent funding for the next stage of drilling. Other December 2013 releases (not fully provided) reported rock-sampling results at the Marateca, Sines and Alvito licences in southern Portugal, with Alvito exploration funded by Callinan Royalties; the text for releases 99.3 and 99.4 was truncated and is unknown.
joint venture update
1 Sept
Avrupa reported more Slivovo (Kosovo) drilling from the Peshter Gossan: 125 m at 6.91 g/t gold and 19.19 g/t silver in hole SLV018, 62 m at 1.59 g/t gold in SLV016 and 16 m at 1.44 g/t gold in SLV019, continuing the 2015 Phase 3 programme funded by Byrnecut (which has completed its 51% earn-in by spending €1 million). Byrnecut has also contracted Mining Plus to start an initial resource model, with the stated aim of supporting a decision on moving to a mining licence and pre-feasibility work; drilling had reached SLV028 with about 1,800 m completed in this phase. This builds on the July 2015 results and begins to address the open question of whether a viable resource exists at Peshter, though no resource figure is given yet.
drilling result
28 July
Drilling at the Slivovo JV in Kosovo (the licence won in 2012, now funded by partner Byrnecut International) hit 30 m at 6.92 g/t gold in hole SLV011, and a 55 m interval averaging 4.24 g/t gold. Byrnecut has now completed its 51% earn-in commitment, and Avrupa has started a Phase 3 programme of up to 3,000 m. Several other holes (e.g. at Xzemail) returned only low gold results. The filing also bundles later June-July 2015 news releases whose text was not provided.
drilling result