Vancouver based EurOmax (CVE:EOX) reported Tuesday that it has amended an pre-existing options deal with a major international mining company regarding the Karavansalija Mineralized Complex (KMC) property – in Serbia.
Under the amended deal, the unnamed mining company agreed to give up its option to buy a 70% stake in the KMC property, in exchange for a 2% net smelter royalty on gold, and a 1.5% net smelter royalty on all base and precious metals other than gold.
EurOmax said, through its subsidiary, it now owns a 100% interest in the KMC property, subject to the aforementioned royalty obligations.
"This is a significant milestone for EurOmax," said EurOmax chief executive Mark Gustafson in a statement. "Elimination of this back-in right allows us better control over exploration and development activities at KMC, including this year's geophysical and drilling program."
KMC, which is situated southwest Serbia, is a big Tertiary-aged precious and base metal district.
Currently to date, multiple drill holes have identified extensive copper-gold skarn and gold-bearing siliceous breccias in many locations.
EurOmax said an extensive geophysical program, including 100 kilometres of induced polarization-resistivity lines and magnetics and gravity surveys, is scheduled to start this quarter.
The impetus of the surveys is to identify potential mineralized intrusions as well as additional skarn and breccia drill targets on the 60 square kilometre project, it added.
Based upon the results of previous geophysical surveys and drill results a 2,500 meter to 3,000 meter diamond drill program is scheduled to begin late in the third quarter to test new anomalies as well as extensions of known mineralized zones on the property.
Junior explorer EurOmax holds a number of base and precious metal projects in Bulgaria, Serbia and Macedonia.