Serbia mining: Canada Avala and Danube gold mining companies merge and join forces in exploration in Serbia

Published on 5. August 2014., Mining

Companies in Serbia performing geological exploration of gold, “Avala resources” and “Danube minerals”, has announced the integration into one company. “Subsidiary companies of Canadian companies “Avala Resources Ltd.” and”Dunav Resources Ltd.”, announce an agreement on mutual integration”, said in a statement the two companies that are listed on the Toronto Stock Exchange.

Both companies, starting in 2010th, or 2011th,financed geological exploration projects in Serbia. “Merging the two companies into one will bring many advantages, including the integration of their geological and exploration activities in Serbia, and the cost reduction of management and administration”,said in the statement.

As the research manager of “Avala resources” Justin van der Torn pointed out, this restructuring provided financial security for further investigation. He stresses that the focus for investors and all stakeholders is to continue to progress, which is based on previous research results, and development of mineral resources.

“Therefore, our goal is to make savings in other business segments, in order to continue further development”, said Van der Torn.

Last month, the company “Dunav minerals” announced a new resource of 1.25 million tons of copper and 120 tons of gold in the project of Tulare in Medvedja municipality in southern Serbia.

Parallel to this, in June, the company “Avala resources” announced the results of a preliminary economic study on theproject of gold in Timok near Zagubica, citing potential production of 2.5 tonnes of gold per year.