Middle Island Resources (ASX:MDI) has entered into a binding share sale and purchase agreement to acquire Konstantin Resources which owns 14 exploration and mining licences covering 620km2 in Serbia.
The tenements comprise three main project areas – Bobija, Priboj, and Timok – which are considered primarily for gold and copper, as well as silver, lead, and zinc.
Under the deal, Middle Island will issue 475 million shares, 60 million options exercisable at $0.04 with a three-year expiry date and 40 million options exercisable at $0.06 each with a three-year expiry date to Konstantin.
The acquisition is subject to completing certain conditions precedent, including obtaining shareholder approval in mid-October 2025 and Middle Island completing a placement, raising $3.4 million.
As part of the placement – which is lead managed by Cygnet Capital – 200 million shares will be issued at $0.017 each. The funds will be used to fund exploration across its Australian assets, as well as accelerate an exploration program for Konstantin.
Middle Island’s share price had spiked 84.99% to $0.037 as of 10.45am AEST today (2 September).
Non-executive director Daniel Raihani says over numerous years, Konstantin has accumulated a prospective portfolio of Serbian precious and base metals projects.
Konstantin Executive Chairman Peter Spiers says this transaction positions the company to unlock value from a combined project portfolio of copper and gold-focused assets.
There are several exploration programs being undertaken across the Serbian projects, including a reverse circulation drilling program at Bobija, trenching and rock chip sampling at the Bobija mine pit, and geochemistry work across multiple project areas.
Once the acquisition is completed, Middle Island will focus primarily on Bobija. Initial exploration will include detailed channel sampling and a staged drilling program.
The company will progress regional exploration programs across the balance of granted licences in Bobija. These programs will include a follow-up stream sediment sampling programs, alongside soil and rock chip sampling targeting areas of historical workings and stream sediment sample anomalies.
Middle Island Resources is a junior mineral explorer focused on copper and gold discoveries in Australia and Serbia.
Write to Aaliyah Rogan at Mining.com.au
Images: Middle Island Resources
