The FINANCIAL — The European Bank for Reconstruction and Development (EBRD) has acquired a 2.62 per cent stake in Adriatic Metals PLC to support development of the Vareš silver project in Bosnia and Herzegovina.
The Bank’s investment of GBP 6.2 million (€6.62 million equivalent) will be used to finance the transition from exploration to mine development.
The brownfield site is located in Vareš, a traditional mining community in the Zenica-Doboj canton of Bosnia and Herzegovina. Despite a long tradition in mining, Bosnia and Herzegovina has not attracted foreign direct investment in the mining sector over the past two decades. Development of the mine therefore has strong support locally as it is expected to create much-needed employment opportunities.
The region’s mineral sector will benefit from Adriatic Metals’ introduction of modern exploration methods and project management, with a strong focus on environmental, social, and health and safety practices. The company has committed itself to the highest environmental and social standards.
Eric Rasmussen, EBRD Head of Natural Resources, commented: “We are pleased that the EBRD will become a shareholder in Adriatic Mining. The company’s’ responsible mining operations set a good example for the industry in Bosnia and Herzegovina.”
“There are significant opportunities in Bosnia & Herzegovina for Adriatic’s environmental & social standards to set new benchmarks, and with this investment from EBRD, both our balance sheet and our resolve are strengthened by a new partner, who shares our values and our vision,” said Paul Cronin, the CEO of Adriatic Metals.
The EBRD is a leading investor in the country, with more than €2.6 billion invested in 183 projects there to date. The Bank focuses on the expansion of the local private sector, promotion of regional and international integration and sustainable use of resources.