Adriatic Metals discusses transition to mining operator of Rupice Mine at Vares project

  • general

  • 22 April 2024

Adriatic Metals PLC (LSE:ADT1, ASX:ADT, OTCQX:ADMLF) chief executive Paul Cronin tells Proactive's Stephen Gunnion the company has commenced the transition process to take over as the mining operator as it boosts productivity and sustainability at the Rupice Mine in Bosnia & and Herzegovina.

Following an Accelerated Development Action Plan (ADAP), Cronin said is taking operational control over the mine from Nova Mining and Construction, after acquiring equipment and inventory worth approximately $11 million. This strategic shift allows Adriatic Metals to directly manage and develop its local workforce and optimise cost by integrating local suppliers into its supply chain.

Additionally, the company has implemented new technologies and enhanced health and safety measures under the ADAP, aiming at reducing operational incidents and environmental impacts.

To support these changes, Adriatic Metals has secured a $25 million short-term loan facility from Orion Mining Fund for additional working capital. These steps are part of a broader effort to improve efficiency and position the mine as a catalyst for local economic development.