EMX's royalty portfolio in Serbia initially resulted from prospect generation and organic royalty growth via the sale of its properties, including Brestovac West, to Reservoir Capital Corp. for uncapped NSR royalties of 2% for gold and silver and 1% for all other metals (see EMX news release dated October 30, 2006). Reservoir Capital later transferred those interests to Reservoir Minerals Inc. ("Reservoir"). Subsequently, EMX acquired 0.5% NSR royalty interests (note: the royalty percentage is subject to reduction on conditions specified in the royalty agreement) covering the Brestovac and Jasikovo-Durlan Potok properties (see EMX news release dated February 4, 2014), which along with Brestovac West, are included in the Timok Project Joint Venture with Freeport. EMX notes that a) the original Brestovac and Brestovac permits are now covered by the Brestovac Metonivca and Brestovac Zapad permits, and b) portions of a reconfigured Jasikovo-Durlan Potok permit (i.e., expanded in some areas and reduced in other areas) are not covered by the EMX royalty. Brestovac (Brestovac Metonivca) hosts epithermal and porphyry copper-gold mineralization at the Cukaru Peki project.

The Brestovac royalty property hosts porphyry and epithermal copper-gold mineralization at the Cukaru Peki deposit, where Reservoir announced an updated resource estimate and positive PEA results (see Reservoir news release dated April 19, 2016). Subsequently, Reservoir announced a definitive agreement with Nevsun Resources Ltd. to combine their respective companies (see Reservoir news release dated April 24, 2016). Completion of the arrangement was conditional on the exercise by Reservoir of its right of first offer ("ROFO") in respect of the original Timok Joint Venture agreement. Reservoir and Nevsun reported that the ROFO was successfully exercised, with Reservoir acquiring Freeport's interest in the Upper Zone of Cukaru Peki, and increasing its interest in the Lower Zone (see Reservoir news release dated May 2, 2016). Nevsun subsequently closed the acquisition of Reservoir as announced in a June 23, 2016 news release.

The Brestovac West royalty property is ~700 meters west of Cukaru Peki and contains the Corridor Zone high-grade gold prospect and the Ogashu Kucajna epithermal gold occurrence. The Jasikovo East-Durlan Potok property occurs to the north in the Timok copper-gold belt.

The Company's Timok royalty properties add strategic upside potential in an ongoing copper-gold discovery occurring in one of the richest copper-gold mineral belts in Europe.

See EMX news releases dated October 30, 2006 and February 4, 2014 for more information.


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Mining at the Bor Pit. Note: The nearby mine in the district provides geologic context for EMX Click to Enlarge