July 2024 – SOG in cooperation with Kinstellar is proud to announce its role as legal counsel to Strickland Metals Limited, an ASX-listed mineral exploration company from Australia, on its acquisition of Zlatna Reka Resources d.o.o. Beograd-Vracar. This acquisition marks a significant development in Serbia’s burgeoning mining industry, as the project holds an impressive 5.4 million ounce gold resource.
Kinstellar’s team, led by Senior Associates Sara Ostojić and Mario Kijanović, as well as Associate Vuk Vučković, provided comprehensive legal services for this acquisition. Our involvement included a thorough legal due diligence of the mining titles, permits, and accompanying documentation of the target company.
Zlatna Reka Resources, whose sole shareholder is Betoota Holdings Ltd, is ultimately owned by Ibaera Capital Fund, a private equity group with its seat in the Cayman Islands and offices in Australia.
Strickland Metals Limited is an Australian mineral exploration company listed on the Australian Securities Exchange. The company is focused on discovering and developing significant mineral resources to create value for its shareholders. This acquisition enhances Strickland Metals' portfolio and positions them strategically within Serbia's mining sector.
The Mining Industry in Serbia
Serbia’s mining industry has been experiencing significant growth and investment in recent years. The country is rich in various mineral resources, including copper, gold, and lithium, making it a key player in the regional mining landscape.
Serbia is known for its significant reserves of gold and other precious metals. The Timok Magmatic Complex is one of the most notable regions, hosting substantial deposits of gold, copper, and other valuable minerals. The Bor and Majdanpek mining districts are also well-known for their rich mineral resources. Recent exploration activities have identified several promising sites, leading to increased interest from international mining companies
The mining industry is diverse, encompassing the extraction of various minerals, including copper, gold, zinc, and lithium. The sector has seen robust growth, with significant contributions to the national economy. Key players in the industry include both domestic and international companies, such as Zijin Mining Group, Rio Tinto, and now Strickland Metals.
The mining sector in Serbia employs a substantial workforce and contributes significantly to the country’s GDP. The government’s commitment to supporting the industry through favorable policies and infrastructure development has further spurred growth.
The acquisition of Zlatna Reka Resources by Strickland Metals is a testament to the growing attractiveness of Serbia's mining sector to international investors.