Raiden Resources (ASX: RDN), formerly known as Subzero Group (ASX: SZG), was reinstated to official quotation on the ASX today, after raising A$5 million to fund its foray into Serbia’s mining sector through its takeover of Timok Resources.
Raiden inked the agreement to takeover 100% Western Australia-based Timok Resources in November last year in order secure ownership of its wholly-owned Serbian entities Skarnore Resources and Kingstown Resources.
Skarnore owns 100% of the Donje Nevlje project which covers about 74 square kilometres in a region that has produced copper and gold for more than some 100 years.
In addition to Donje Nevlje, Skarnore has a joint venture agreement to earn up to 90% of the Stara Planina project, which encompasses 63sq km and is believed prospective for gold and copper.
Raiden claims Stara Planina’s geology is similar to a nearby past producing gold mine in Serbia’s east and the Ogosta gold deposit in Bulgaria.
Skarnore has also applied for the 21sq km Pirot project in Serbia’s south east and about 20km from Donje Nevlje.
Meanwhile, Kingstown Resources wholly-owns the Majdanpek project which totals 79sq km and comprises two granted exploration licences. Raiden claims this project is also prospective for gold and copper.
Kingstown Resources is also acquiring the Zupa project, which covers 85sq km and is adjacent to an advanced polymetallic deposit.
As well as Majdanpek and Zupa, Kingstown Resources partially owns the Bor project which comprises one granted exploration licence and three exploration applications, which are also believe prospective for copper and gold.
According to Raiden, Serbia was selected as its primary mining jurisdiction due to its number of historical “tier one deposits” and recent discoveries.
The company claims Serbia is a mining-friendly jurisdiction, with low energy costs. The projects have access to a good infrastructure network of rail, roads, ports and smelters and a skilled workforce.
In its prospectus, Raiden offered 250 million shares at A$0.02 each, with Timok’s vendors to retain an 18.3% stake in Raiden.
The company opened the day at A$0.028, which was a 40% premium to its offer price. The share price soared 60% during morning trade to peak at A$0.032 before settling at A$0.030 by early afternoon trade – up 50%.