World’s biggest mining company also targeting Serbian treasure – Australia’s BHP agrees earning of 7 copper and gold exploration permits for Zajecar area

Mundoro Capital Inc. has announced that it has entered into a definitive option agreement with a wholly owned subsidiary of BHP Group Limited, in which Mundoro has granted to BHP an option to earn-in to seven of Mundoro’s exploration licenses in Serbia.

The Central Timok Project near Zajecar contains numerous targets, with the most advanced being the Skorusa copper-gold porphyry system, the Tilva Rosh Prospect, where trenching returned 12 meters at 30.39 g/t Au and 171.27 g/t Ag, and additional prospective targets include Markov Kamen, Orlovo, D-vein, Prekostenski, Zlot 1-3, Bukova, Tilva Mare, Glavica, Bacevica North, Gorunov, Oblez SE and Branik, on a total of 418 square kilometers.

Pursuant to the agreement, Mundoro has granted to BHP, which is one of the biggest mining companies in the world along with Rio Tinto, an option to earn, over 10 years, a 100% interest in the BHP-Mundoro Central Timok Project. To exercise the option, BHP must fund cumulative exploration expenditures up to USD 35 million.

Mundoro will operate the project and retains a 2% NSR royalty upon exercise.

Mundoro has been looking for gold and copper in the Timok region in Serbia since 2011.

Let us remind that this is not the first cooperation between Mundoro and BHP in Serbia. In January 2023, the Canadians also signed an option agreement with the Australians, according to which BHP has the opportunity to acquire ownership in three Serbian copper projects – Bor Lake, South Timok and the Trstenik exploration area.

BHP subsequently established a subsidiary in Serbia, BHP Metals Exploration doo, whose owner, according to data from the Serbian Business Registers Agency, is BHP Billiton (the old name for BHP).

According to the 2023 agreement, BHP received the right to acquire a 100% stake in each of the mentioned projects by paying approximately USD 1.7 million in cash, paying operating fees to Mundoro over a period of three years, and also bearing exploration costs in the amount of USD 7.5 million on three projects over three years.

BHP announced at the time that it intended to focus on “raw materials of the future” for these projects, including copper, nickel and potassium.

Teo Dechev, CEO of Mundoro commented in a statement on the occasion of the signing of the latest agreement with BHP that “we are pleased to announce the expansion of our strategic partnership with BHP, a world leader in the resources industry.”

– This deepened collaboration focuses on exploring a package of additional exploration licenses in the highly prospective Timok region of eastern Serbia for copper porphyry systems. This integrated approach, which draws upon Mundoro’s deep understanding of local geological conditions and BHP’s cutting-edge global exploration methodologies, is designed to enhance targeting capabilities and significantly increase the likelihood of new discoveries within the Timok region. We believe this expanded partnership will drive value for both companies and has the potential to contribute to the economic development of eastern Serbia – said Dechev.

A total of CAD 15.4 million has been spent on the project by Mundoro and previous partners, the press release adds.

B. P.

BHP Metals Exploration d.o.o. Beograd

Mundoro Capital Inc

BHP Group Limited

BHP Metals Exploration doo

BHP Billiton

Central Timok Project

copper and gold exploration licenses