Avrupa Minerals (AVU.V) announced it signed a terms sheet with Byrnecut International which allows Byrnecut to reach an 85% ownership of the Slivovo project in Kosovo. As per the agreement, Byrnecut needs to spend 1M EUR in exploration expenditures within a year from signing the definitive agreement to gain a 51% stake in the project. This could be increased to 75% by spending another 1M EUR on the ground by March 2016. Should Byrnecut wish to advance the project even further, it can obtain an 85% stake by completing a preliminary feasibility study within three years.
Whilst the earn-in amounts seem to be quite low, we are encouraged to see Avrupa signing up a partner which commits to spend at least 1M EUR (C$1.45M) on the project within the year. The timeline to reach an 85% ownership is quite short, so Byrnecut will probably ensure a steady news flow coming from the Slivovo project in 2014. The definitive agreement is expected to be signed later this quarter.
The company has also started phase 4 drilling at its Alvalade project in Southern Portugal which is a joint venture with Antofagasta (LON:ANTO).
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