6 March 2024
Adriatic
Metals PLC
("Adriatic Metals" or the "Company")
VARES
PROJECT OPENING EVENT
"Prosperity, Sustainability, Together"
Adriatic Metals
PLC (ASX:ADT, LSE:ADT1,
OTCQX:ADMLF)
is pleased to announce that on 5 March 2024, the company marked the Grand Opening of the Vares
Project in Bosnia and Herzegovina. The official opening event took
place at the Vares Processing Plant and was attended by Nermin
Nikšić,
Prime Minister of the Federation of Bosnia and Herzegovina, Zdravko
Marošević, Mayor of
Vares and other key dignitaries. This follows the production of
first concentrate at the Vares Project on 27 February
2024.
Following official proceedings, a
celebratory event 'Vares Fest' was held in the local town square to
mark the momentous occasion in the region. Adriatic management and
employees, key suppliers and the local community came together to
enjoy an afternoon of traditional music, culture and other
festivities.
Following an exploration and
development investment of US$250m, Adriatic Metals produced the
first silver/lead concentrate and zinc concentrate from the newly
constructed Vares Processing Plant on 27 February 2024. The Rupice
Mine, from which the ore is sourced, commenced mining in July 2023.
The Company will now focus on plant optimisation and ramp up to
consistent production and is scheduled to reach nameplate capacity
of 800,000 tonnes per annum in Q4 2024.
The Vares Project was designed and
constructed using the latest technology from the leading suppliers
and manufacturers in the industry, such as Glencore Technologies,
Metso-Outotec and Weir. The silver-lead-zinc mine was completed
using local employees, Bosnian suppliers and operates to the
highest ESG standards. The Project demonstrates that mining
operations can be constructed and operated in a sustainable way in
Europe, while supporting the economy and improve living standards
both locally and nationally.
Nermin Nikšić, Prime Minister of the
Federation of Bosnia and Herzegovina commented;
"I
am happy that we have all come together today to recognize the
importance of the Vares Project. Regardless of the fact that the
Project is constructed in Vareš and the Zenica-Doboj Canton, within
the Federation of Bosnia and Herzegovina the significance is
immeasurable. This Project has invested US$250m and employs
directly or indirectly over 500 people. This is something that all
authorities must fully support.
I
also consider the message we are sending to other investors very
important. We are showing that successful investment is possible in
the Federation of Bosnia and Herzegovina, and beyond. This is not
only the beginning of work for Adriatic Metals and the beginning of
production, but also a signal to all future investors that Bosnia
and Herzegovina is open to investment."
Zdravko Marošević, Mayor of Vares
commented;
"Adriatic Metals has revived our town, strengthened the
population and economic activities. Additionally, they have
restored our robust mining tradition, giving the community a sense
of pride and purpose to live and work here.
It
has been a pleasure working with the Adriatic team, and I look
forward to a strong business collaboration in the upcoming period
as the Project reaches and surpasses its production capacity. I
would like to express gratitude to the Company for putting our
renowned Vareš back on the map as a significant metal
producer."
Paul Cronin, CEO of Adriatic Metals,
commented:
"I
am delighted to celebrate this momentous occasion with the team who
helped deliver this project. I would like to acknowledge all those
who have made this Project possible - from first exploration drill
hole to first concentrate production in under seven years is truly
a fantastic achievement.
This wonderful event represents not only a significant
milestone in Adriatic's journey to becoming a mid-tier, European
focused mining company, but also a turning point for the local
community as well. We have always embraced the 'Adriatic Way',
which aims to set a new standard for responsible mining operations.
Our focus is sustainable resource extraction alongside innovation,
community engagement and economic development."
Background to the Vares
Project
The Vares Project is the latest
metals mine to open in Europe. The Project paves the way for a
culture of sustainable mining in the region, supported by local
communities and government.
Adriatic is a first mover in modern
mining in Bosnia and Herzegovina. The Company discovered the
high-grade Rupice mine in 2017 and has gone through exploration,
permitting, funding and construction of the Vares Project during a
period that was subject to the COVID-19 pandemic, high inflation
and a tight labour market.
Europe urgently needs
locally-sourced critical metals including zinc, silver and copper
to fuel the Net Zero clean energy transition as evidenced by the EU
Critical Raw Minerals Act (CRMA) 2023 which was ratified by the
European Commission in December 2023. The CRMA aims to encourage
regional production of critical metals in order to reduce strategic
dependencies on third-party imports; improving the EU's capacity to
mitigate disruptions to the supply of critical raw materials and
improving sustainability in the region. The Vares Project supports
the achievement of these three principles. In addition, the
majority of Vares's lead-silver and zinc concentrate, is destined
for European smelters to offtake partners Boliden, Glencore,
Trafigura and Transamine.
Adriatic is dedicated to responsible
and sustainable operations. The Company is focused on using the
latest technology, stringent health and safety measures and
minimizing its environmental impact across all its operations.
Adriatic prioritises partnerships with local suppliers and
stimulating local economic growth by providing greater
opportunities to local businesses. 69% of
total capital spend was to domestic companies, equivalent to US$155
million, across 739 companies. The Company
has a commitment to community development that extends beyond
mining operations, reflecting dedication to leaving a lasting and
positive legacy.
The Vares Project is the first
producing asset in Adriatic's portfolio of metals projects in
Europe - Adriatic's vision is to become a significant player in the
European mining industry.
KEY
STATISTICS - ECONOMIC PROSPERITY FOR BOSNIA AND
HERZEGOVINA
·
Overall investment of US$250 million including
exploration and development since 2017
·
2% contribution to Bosnian GDP during
operations
·
The Vares Project investment contributed
25% of Bosnian 2022 foreign direct
investment.
·
Approximately US$177m in corporate tax &
social contribution payments will be made over the life of mining
operations
·
Approximately US$23m in direct royalty payments to
Government over the life of mining
operations
·
27% of employees of Adriatic Metals are women,
surpassing the global mining workforce average of 15% according to
a 2020 World Bank report, and significantly exceeding the
approximately 10% representation in Bosnia and
Herzegovina
·
Adriatic Metals has 255 employees as of January
2024, of which 73% comes from Zenica-Doboj Canton
·
Overall domestic suppliers to the Vares Project
constitute 69% of total capital spend, the equivalent of US$155
million across 739 companies.
The Ministry of Foreign Trade and
Economic Relations of Bosnia and Herzegovina, as well as the
Federal Ministry of Energy, Mining, and Industry, have awarded the
investment of Adriatic Metals the status of "a project of
significance for Bosnia and Herzegovina". The recognition of this
status considered the registered capital of the company, the number
of employees, employment plans in the coming period, and the
support of the local community for this project.
Figure 1: Julian Reilly,
Ambassador of the United Kingdom to Bosnia and Herzegovina, Nezir
Pivic, Prime Minister of Zenica-Doboj Canton, Sanela Karic, Board
Member of Adriatic Metals and Nermin
Nikšić, Prime
Minister of the Federation of Bosnia and Herzegovina, 5 March
2024.
Figure 2: Zdravko
Marošević, Mayor of Vares, Nezir Pivic, Prime Minister of Zenica-Doboj
Canton, and Nermin
Nikšić, Prime
Minister of the Federation of Bosnia and
Herzegovina, Sanela Karic, Board Member of Adriatic Metals, Paul Cronin,
Chief Executive Officer of Adriatic Metals and Julian Reilly,
Ambassador of the United Kingdom to Bosnia and
Herzegovina, 5 March 2024
Figure 3: Vares Processing
Plant, 5 March 2024
Figure 4: Vares Processing
Plant, 5 March 2024
Figure 5: Vares Processing
Plant, 5 March 2024
Figure 6: Vares Processing
Plant, 5 March 2024
MARKET ABUSE REGULATION
DISCLOSURE
The information contained within
this announcement is deemed by the Company (LEI:
549300OHAH2GL1DP0L61) to constitute inside information for the
purpose of Article 7 of EU Market Abuse Regulation (EU) No.
596/2014 as it forms part of UK domestic law by virtue of the
European Union (Withdrawal) ACT 2018, as amended. The person
responsible for arranging and authorising the release of this
announcement on behalf of the Company is Paul Cronin, Managing
Director and CEO.
Authorised by Paul Cronin, Managing
Director & CEO
For further information please
visit: www.adriaticmetals.com;
email: info@adriaticmetals.com,
@AdriaticMetals
on Twitter; or contact:
Adriatic Metals PLC
|
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Paul Cronin / Klara
Kaczmarek
|
Via Buchanan
|
|
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Buchanan
|
Tel: +44 (0) 20 7466 5000
|
Bobby Morse / Oonagh
Reidy
|
adriatic@buchanan.uk.com
|
Morgans Corporate Limited
|
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Rob Douglas / Sam Warriner / Mitch
Duffy
|
Tel: +61 7 3334 4888
|
|
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RBC
Capital Markets
|
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Farid Dadashev / James Agnew / Jamil
Miah
|
Tel: +44 (0) 20 7653 4000
|
|
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Stifel Nicolaus Europe Limited
|
Ashton Clanfield / Callum Stewart /
Varun Talwar
|
Tel: +44 (0) 20 7710 7600
|
|
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Citadel Magnus
|
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Cameron Gilenko
|
Tel: +61 2 8234 0100
|
ABOUT ADRIATIC METALS
Adriatic Metals PLC (ASX:ADT,
LSE:ADT1, OTCQX:ADMLF) is a precious and base metals developer that
is advancing the world-class Vares Silver Project in Bosnia &
Herzegovina, as well as the Raska Zinc-Silver Project in
Serbia. The Vares Silver Project is fully funded to
production, which took place in February 2024. Concurrent with
ongoing construction activities, the Company continues to explore
across its highly prospective 44km2 concession
package.