Sandfire likes what it sees in Adriatic
Acquisitive copper miner Sandfire Resources appears to be building a strategic stake in Balkan States
5th July 2019
Resources Rising Stars
Acquisitive copper miner Sandfire Resources appears to be building a strategic stake in Balkan States-focused explorer Adriatic Metals (reports The West Australian).
A change in substantial shareholder notice lodged with the ASX yesterday showed the Karl Simichled miner had bought more than $5 million worth of Adriatic shares on the market over the past week, lifting its holding from 7.7 per cent to 11 per cent.
Sandfire kicked $2 million into Adriatic’s $10 million initial public offering in May last year and in November it was reported the base and precious metals explorer had rejected its offer to take all of an $11 million placement.
Adriatic’s recent drilling success at the Rupice prospect of its Vares project in Bosnia and Herzegovina has not gone unnoticed by investors.
Adriatic was the best-performing small cap float last year, ending the year up 188 per cent on its 20¢ listing price.
Shares in Adriatic, which is expect to announce a maiden resource soon, were up 8.5¢, or 8 per cent, to $1.14 yesterday.
Sandfire’s buying spree comes a week after it announced it would takeover Botswana-focused copper player MOD Resources for $167 million.
The cashed-up Sandfire is desperate to replace production from its DeGrussa mine, which is set to be exhausted in 2022.
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