Adriatic Metals PLC (LSE:ADT1, ASX:ADT, FRA:3FNA, OTCQX:ADMLF) said it expects shortly to announce the results of a feasibility study on the Vares silver project in Bosnia and Herzegovina, while all permits are now in place for underground and construction to start in the second half of the year.
Over the first half of 2021, Adriatic received its Veovaca exploitation permit, Rupice environmental permit and Rupice urban planning permit.
“Tremendous progress has been made on the feasibility study during the period and we expect to be in a position to announce the results of this study very shortly,” it added.
Good progress has also been made on concentrate marketing activities with term sheets received from a number of potential off-takers, further de-risking the Vares project, Adriatic said.
Steps to secure the funding necessary to commence construction at Vares had also advanced, the company added, and it said it expects a smooth completion of the project financing once the feasibility study has been completed.
In February, Adriatic also exercised its option over the Kizevak and Sastavci prospects that form the Raska Project in Serbia.
In the six months ended 30 June 2021, Adriatic posted an operating loss of £4.55mln while it ended the period with net cash of £20.8mln excluding US$20mln QRC debentures that mature in November 2024 unless converted.