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
What it means for a shareholder
6.3m new shares at C$0.080 to raise about C$500,000. That's 6.7% dilution: every existing holder's slice gets 6.7% smaller. If you held C$1,000 of shares (12,500 at the issue price), your slice goes from 0.0144% to 0.0134% of the company. To keep it you'd need 899 more shares - about C$72 at the issue price.
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.
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.
24 Oct 2016capital raising announcement▲ GoodMajor
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.
What it means for a shareholder
13.5m new shares at C$0.100 to raise about C$1.4m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
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.
Filed in November 2015 but covering June-August 2014 material. Avrupa added a section to its articles, effective June 4, 2014, setting advance-notice rules for shareholders who want to nominate directors. A June 9, 2014 release said Alvalade drilling (2,700-3,000 m, targeting extensions of the Sesmarias massive sulfide mineralization) and Covas drilling were planned, the Alvito project (funded by Callinan Royalties) was JV-ready with a partner being sought, and Slivovo targeting had started in April 2014 on receipt of Byrnecut's first funding tranche. The headline July 24, 2014 release on 57.85 m of massive sulfides at Sesmarias and the later releases were truncated, so their details are unknown.
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.
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.
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.
Filed in 2015 but covering September-November 2013 releases. Avrupa closed a $600,000 financing of 6 million units at $0.10, each with a warrant to buy a share at $0.15 until September 24, 2016, leaving 35,043,571 shares outstanding. Phase 2 drilling (1,500-2,000 m) began at the Covas JV, fully funded by Blackheath. The headline November 7, 2013 release on continued Alvalade drilling was not included in the text provided, so its details are unknown.
Filed in 2015 but covering June-August 2013 news releases. Avrupa optioned its Arga licence in Portugal to Blackheath Resources, which can earn 51% by spending €200,000 by March 23, 2015 (€60,000 firm by March 23, 2014), rising to 70% with a further €800,000 and 85% by completing a pre-feasibility study. It also reported that Antofagasta had spent about $2.9 million on Alvalade by March 31, 2013, that Avrupa had earned 85% of the German Erzgebirge property, and that directors and officers were re-elected at the AGM.
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.
A bundle of three June 2012 news releases. Avrupa began early exploration on the Oelsnitz gold-tungsten-tin licence in Germany with partner Beak Consultants; it must spend €140,000 (~C$180,000) to earn 85%. It finished Phase 1 drilling (eight holes, 3,269.8 m) at the Alvalade JV in Portugal with Antofagasta Minerals, which has an option to earn 51% by spending US$4.3 million and has so far forwarded US$1.5 million; Phase 2 drilling is scheduled for August. It was also awarded the 15 km2 Slivovo licence in Kosovo. No drilling results with grades are given for Alvalade.
