EMX’s royalty portfolio in Serbia initially resulted from prospect generation and organic royalty growth via the 2006 sale of its properties, including Brestovac West, for uncapped NSR royalties of 2% for gold and silver and 1% for all other metals. Subsequently, EMX acquired 0.5% NSR royalty interests covering the Brestovac and Durlan Potok properties, which along with Brestovac West, are included in the Timok Project, which is now controlled by Zijin Mining Group Co., Ltd. (“Zijin”).
Zijin has steadily advanced the Timok Project since acquiring 100% control in 2019 through the acquisition of previous owner Nevsun Resources Ltd. (“Nevsun”), as well as the purchase of the remaining Lower Zone minority interest from Freeport-McMoRan Inc. Zijin’s work since the acquisition has included mine development and executing a Memorandum of Understanding (“MOU”) with the Government of the Republic of Serbia that provides a framework for advancing the Upper Zone project to production.
The Timok Project’s Cukaru Peki deposit, which is covered by the Brestovac NSR royalty, includes the Upper Zone underground development project which consists of high-grade, epithermal-style copper-gold mineralization, and the Lower Zone project which consists of a deeper body of porphyry-style copper-gold mineralization. Prior to its acquisition by Zijin, a Pre-Feasibility Study (“PFS”) of the Upper Zone and resource estimate of the Lower Zone was completed by Nevsun and filed in August 2018 under Nevsun’s profile on SEDAR.
EMX’s Brestovac West royalty property is directly west of Brestovac, and contains the Corridor Zone gold prospect. The Durlan Potok royalty property occurs to the north in the Timok belt. The Company’s Timok royalty properties occur along trend from the world-class Bor-Majdanpek mining complex, and add strategic upside royalty optionality in one of Europe’s richest mineral belts.
EMX notes that: a) the original Brestovac and Brestovac West permits are now covered by the Brestovac Metonivca and Brestovac Zapad permits, and b) portions of a reconfigured Durlan Potok permit (e.g., expanded in some areas and reduced in other areas) are not covered by the EMX royalty.