Adriatic debuts after $10m IPO

Peter Bilbe-led Adriatic Metals began trading on the ASX today, after the company raised $10 million via an initial public offering to fund exploration work at its Veovaca and Rupice projects in Europe.

UK-based Adriatic issued 50 million shares at 20 cents each, with Discovery Capital Partners acting as lead manager and Canaccord Genuity as co-manager.

The shares will be settled on the ASX in the form of CHESS Depositary Interests (CDIs).

Located in the Balkan region, Adriatic’s Veovaca project is an open-cut zinc, lead, barite and silver mine, which operated between 1983 and 1987.

The Rupice project, which is also located in the same region, is an exploration project which is prospective for base and precious metals.

Non-executive chairman Mr Bilbe has served as chairman of Independence Group since 2009 and is also chairman of gold-focused Interim Resources.

He was previously a director of ASX-listed Northern Iron, which went into voluntary administration in 2015.

Also on the board is former Anatolia Energy chief executive Paul Cronin, geologist Julian Barnes, along with Eric de Mori.

Mr Bilbe said the company had established a high calibre board and management team.

“The company was very active in 2017, completing a 2,839 metre diamond drilling program and other exploration activities across both Rupice and Veovaca, aimed at confirming historic results and enabling a JORC compliant resource at Veovaca to be completed,” he said

“The results were highly encouraging and in 2018 and 2019 the company has planned substantial drilling programs and development assessments at all projects including regional exploration targets.”

The company said it plans to use about $6.3 million from the offer on exploration work at the Rupice project, $1.5 million at Veovaca, and $2 million for general working capital.

Shares in Adriatic finished the day flat at 20 cents each.