Middle Island Resources’ share price rocketed 80 per cent to $0.036 from $0.02 a share intraday today, driven by the company’s potentially transformative acquisition of Konstantin Resources.
The unlisted Australian company holds 14 exploration and mining licences enclosing 620 square kilometres of Serbia’s Western Tethyan Belt, a globally renowned copper-gold province. The company’s share price closed at $0.034 per share on almost 700 trades.
The deal, paired with a $3.4 million placement at $0.017 per share, strengthens Middle Island’s position as a multi-jurisdictional copper-gold explorer.
The new ground will complement the company’s 8600 square kilometre Australian portfolio, which comprises the Ridgelands gold project in Queensland and the Barkly copper-gold project in the Northern Territory.
The placement, led by Cygnet Capital, boosts Middle Island’s cash reserves to $5.2 million, fuelling exploration across both regions. The acquisition awaits shareholder approval at a mid-October 2025 meeting.
Konstantin’s Serbian portfolio spans three high-potential projects at Bobija, Timok and Priboj, targeting gold, silver, copper, lead and zinc in a region that hosts a crop of world-class deposits.
These include Zijin Mining’s Cukaru Peki operation with its 22.6 million tonnes of copper and 17.1 million ounces of gold, Adriatic Metals’ Vares project hosting 20.9Mt at 1.1 grams per tonne (g/t) gold, 153g/t silver, 0.4 per cent copper, 2.8 per cent lead and 4.3 per cent zinc, and Dundee Precious Metals’ Coka Rakita project, with its 6.6Mt at 6.38g/t gold for 1.4 million ounces of the metal.
Serbia’s modern mining code and established infrastructure, including rail and power lines, enhance the myriad exploration opportunities.
Middle Island Resources non-executive director Daniel Raihani said: “Konstantin has accumulated an incredible and prospective portfolio of Serbian precious metals and base metals exploration projects. We are now poised to accelerate the exploration program of these exciting targets, with Serbia and the Balkan region being a world-class geological setting containing numerous large-scale, high-grade and tier-1 mines.”
The 208-square-kilometre Bobija project, 100km southwest of Belgrade, includes six granted licences for its Bobija, Bobija East and Kamenita Kosa prospects. The company has also applied for a licence at Orovica and has a 10-year option on two more mining licences.
Historical drilling at the Bobija open pit mine revealed significant polymetallic mineralisation, with one hole assaying 45.2 metres at 1.71g/t gold, 25.5g/t silver, 0.87 per cent lead and 2.26 per cent zinc.
A second hole delivered 15.1m at 1.91g/t gold, 122g/t silver, 4.23 per cent lead and 4.73 per cent zinc. Rock chip samples from the pit floor returned up to 5.24g/t gold and 4.66 per cent zinc.
Middle Island plans to undertake immediate channel sampling, reverse circulation and/or diamond drilling and regional soil and stream sediment sampling to define drill targets.
The 218-square-kilometre Timok copper-gold project, 110km east-southeast of Belgrade, lies near the Bor and Majdanpek mines within the Timok Magmatic Complex.
It comprises one granted licence at Brodica and four applications at Coka Fantina, Brodica West, Majdanpek West and Majdanpek Pojas. A 4km-long gold-in-soil anomaly at Brodica yielded rock chip samples up to 134g/t gold and 2385g/t silver.
Exploration will focus on infill soil sampling on a 50m x 50m grid, as well as trenching and drilling by early next year, targeting a diverse array of porphyry, skarn and epithermal copper-gold deposits.
The 195-square-kilometre Priboj copper-gold project, 160km south-southwest of Belgrade, includes three granted licences at Jermovac, Priboj and Ober. Surface sampling at Priboj and Jermovac returned up to 11.3 per cent copper and 6.7g/t silver, pointing to possible volcanic-hosted massive sulphide systems.
At Ober, gold-focused sampling has yielded responses up to 1.85g/t gold. Infill soil sampling at Oglavak and Jelaca prospects, alongside geophysical surveys, will refine drill targets.
The acquisition terms include 475 million shares, 60 million options at a $0.04 per share exercise price, and 40 million options exercisable at $0.06 each. Forty per cent of the shares will be escrowed for six months.
Cygnet Capital will receive 23.75 million shares and 20 million options exercisable $0.04 each, for advisory services. Konstantin’s team, including ex-Dundee Precious Metals experts David Aizzeddin, Dragan Dragic and Peter Spiers, strengthens Middle Island’s exploration capabilities.
Middle Island directors will participate in the placement with Richie Young stumping up $85,000 and Brad Marwood $25,000, subject to statutory approvals.
Middle Island’s Australian assets remain key. The Ridgelands gold project in Queensland targets porphyry and epithermal gold, while the Barkly copper-gold project in the Northern Territory is focused on iron-oxide/copper-gold and sediment-hosted copper-lead-zinc-silver deposits.
The combined 9000 square kilometre portfolio positions Middle Island for significant discoveries. Exploration will accelerate shortly with soil sampling, trenching and drilling across Serbia, while the available funds will also support Australian programs.
Middle Island’s bold move into Serbia’s copper-gold frontier, backed by drill-ready targets, a seasoned leadership team, a robust $3.4 million raise and today’s surging share price, seems to reflect the market’s enthusiasm for spectacular potential offerings in the new terrain.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Doug Bright
