Avrupa Minerals to launch near $1-mln financing

Avrupa Minerals (CVE:AVU) has agreed to launch a $975,000 non-brokered private placement financing to raise funds for exploration at its mineral projects in Portugal, Kosovo and Germany. 

The financing will consist of 6.5 million units at 15 cents each. 

Each unit is made up of a common share and a non-transferable share purchase warrant. Every warrant allows the holder to buy another share at a price of 25 cents for a two-and-a-half year period. 

"Our two JV projects in Portugal are progressing well," said president and CEO of Avrupa, Paul Kuhn.  "Our next focus will be to advance our other prospects in Portugal, Germany and Kosovo to be able to form joint venture partnerships and further advance these programs.

"Funds will also be used to continue to generate new ideas and prospects in our core areas and elsewhere in Europe."

Avrupa is continuing to advance the Alvalade project in the Portuguese Pyrite Belt with its joint venture partner, with a project exploration budget of US$2.5 million for 2012. 

The company is also re-starting exploration work at the Covas joint venture in northern Portugal. 

With regards to its other properties in Portugal, Kosovo and Germany, the company said the assets will be dropped if significant targets are not found. 

Avrupa said it currently has around 20.6 million common shares outstanding, which will increase to 27.1 million once this financing is completed. 

Earlier this month, the company provided details of progress on it work programs in Portugal, highlighting its recent acquisition of the Arcas gold-tungsten license.

The acquisition brings the total of licenses that the company holds in Portugal to nine, covering 2,608 square kilometres.

Avrupa said the Mining Bureau of Portugal (DGEG) awarded a two-year exploration contract to the company, covering 75.8 square kilometres in northern Portugal’s gold-tungsten belt. The company said the area was previously explored for tungsten deposits, but no past production has been reported. 

In 2011, Avrupa collected a total of five select samples of quartz vein material around the project area that averaged 2.15 parts per million (ppm) gold and ranged from 0.405 ppm gold to 3.89 ppm gold.

Avrupa also noted that it is in the process of completing a prospection report covering the parts of the new Alvito license which fall into the Ossa Morena metallogenic zone, lying just north and northeast of the Iberian Pyrite Belt in Portugal.