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(Alliance News) - Adriatic Metals PLC on Monday said it will take over as the operator of the Rupice mine at its Vares project in Bosnia.
Adriatic Metals is a Cheltenham, England-based precious and base metals developer, with licences in Bosnia & Herzegovina and Serbia. Its shares were up 6.6% at 234.00 pence each in London on Monday morning.
Nova Mining and Construction doo, a local mining company, has been operating the mine since 2022. However, in June 2023, Adriatic decided to implement an accelerated development action plan and onboarded experienced international operators to "significantly improve productivity levels".
As a result, Adriatic and Nova have terminated their mining services contract and have entered into a settlement and termination agreement, which will allow Adriatic to operate the mine upon completion.
Adriatic said that it will undertake "key measures" to improve underground development and productivity at the mine. This includes the introduction of new mining methodology, the recruitment of staff with "advanced health and safety skills and rapid mine development experience," improved procurement practices and a focus on environmental protection.
The firm noted that since implementing the accelerated development action plan in June, underground quarterly development has increased by 71% at Rupice mine.
Managing Director & Chief Executive Officer Paul Cronin said: "I am pleased with the progress made by our leadership team since the initiation of our accelerated development action plan in June 2023. It is the opportune time for us to transition to mining owner-operator and I would like to thank Nova for their support over the last few years. We have a highly experienced mining team at Adriatic dedicated to driving development, as demonstrated by achieving a record-breaking 250 meters of underground progress in March this year.
"The Vares project is expected to be one of the lowest-cost silver producers globally. Our focus remains on driving down mining costs further through enhanced operational efficiencies, rigorous cost management and optimised procurement processes."
By Sabrina Penty, Alliance News reporter
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