Raihani adds Middle Island chair to growing directorship list

Middle Island Resources has appointed dealmaker Daniel Raihani as its new non-executive chairman to steer the company through its next growth phase. 

The move comes as Middle Island prepares to seal the deal to buy Konstantin Resources and kick off a maiden drilling program targeting copper, gold, silver, zinc and lead at Konstantin’s Bobija project in Serbia.

Almost unknown in the ASX world just 2 years ago, Raihani, formerly a successful private businessman, has kicked the door in at the ASX more recently, taking up a plethora of positions with listed companies over the last 2 years – often bringing his own cheque book and deals to the table.

In that time he has taken up roles with Aurumin Ltd, where he is currently the managing director and non-executive roles at Forrestania Resources, Voltaic Stategic Resources, First Au Ltd and telco company BSA Ltd.

His latest move will see Raihani elevated to the chair of Middle Island after serving as a non-executive director since April this year, making him one of the busiest people in the ASX small capped space.

Middle Island’s fortunes would appear to be at a turning point too as it moves forward with an all-scrip deal to buy Konstantin Resources for 475 million Middle Island shares and 100 million options, subject to shareholder approval. 

Konstantin is a privately held explorer and sits on a suite of highly prospective copper-gold exploration assets in Serbia, headlined by the company’s brownfield Bobija polymetallic project.

Konstantin’s leadership trio – geologists Peter Spiers, David A‑Izzeddin and Dragan Dragić – previously worked for Canadian-listed Dundee Precious Metals before striking out on their own to chase the rich potential of eastern Europe. The region is now one of the hottest frontiers for untapped polymetallic discoveries after ASX listed Adriatic Resources made it a thing with its meteoric rise over the last few years.

With a market capitalisation of almost $9 billion, Dundee has a deep connection to mining in those same parts, having last year produced 261,000 ounces of gold and 13,475 tonnes of copper from its Chelopech and Ada Tepe mines in Bulgaria.

On the back of the new acquisition Middle Island managed to lock in a $3.4 million capital raise at 1.7c a share. Shareholders that took part in that raise are off to the races with Middle Island’s stock now trading at 4.7c a share.

Drill rigs have now been moved onto the company’s flagship Bobija project area, which spans 208 square kilometres and lies about 100km southwest of Belgrade.

Initial exploration focus is of the old Bobija mine area, which was first targeted by the former Yugoslav government for its barite, lead and zinc potential. More recent work, including historic drilling by Reservoir Minerals and Nevsun Resources between 2014 and 2017 revealed promising near-surface polymetallic mineralisation.

One standout intercept from earlier drilling came in at 45.2m grading 1.71 grams per tonne (g/t) gold, 25.5g/t silver, 0.87 per cent lead and 2.26 per cent zinc from just 18.8m. Another solid hole hit 15.1m at 1.91g/t gold, 122g/t silver, 4.23 per cent lead and 4.73 per cent zinc from 38.9m. 

In addition to the drill results, more recent rock chip sampling by Konstantin from exposed massive sulphides in the old pit returned grades as high as 5.24g/t gold, 120g/t silver, 4.66 per cent zinc and 4.36 per cent lead, highlighting the area’s high-grade potential.

Middle Island’s European focus marks a bold geographic pivot away from its West Australian roots for the company. And it’s a move that might eventually open the door to delivering a new critical minerals supply chain into Europe, just as the region scrambles to lock down new sources of copper and gold.

With an experienced dealmaker now officially in the chair, all eyes will be on how Middle Island executes on its continental ambitions and whether its Serbian pivot becomes the catalyst for a breakout chapter in the company’s ASX journey.

Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au