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EBRD in first investment in Albania’s mining sector
€6 million loan to Tirex to explore Mirdita district in northern Albania
The EBRD is investing up to €6 million in Tirex, a mining exploration company listed on the TSX Venture Exchange (Canada) and the Frankfurt (Freiverkehr) stock exchange, to support its exploration and drilling programme in the Mirdita District, 70km north of the capital Tirana. Tirex is one of the first private mining companies to undertake exploration in Albania. The Mirdita district has seventeen previously identified deposits containing a variety of metals, including copper, zinc, gold and silver. The district also provides opportunities to apply modern exploration techniques to the discovery of new deposits and the further development of existing mining areas.
The investment will take the form of a convertible loan, available in three equal tranches. Conversion will be linked to the market price of Tirex shares on the TSX Venture Exchange as at the time of signing for the first tranche and disbursement for the second and third tranches.
The exploration project is led by an experienced team of Canadian and Albanian geologists and surveyors. By applying technologies previously unused in Albania, Tirex is conducting modern exploration in a region which was not previously developed to high standards. The additional funding will allow Tirex to prove up to international standards certain previously identified deposits as well to drill up new targets revealed through Tirex’s exploration activity.
“In its first investment in the natural resources sector in Albania, the EBRD is aiming to ensure private sector investment which brings the best standards and technology into the extractive industry in a country which has seen limited quality investment over the past decade. EBRD support will help the company attract additional equity or debt financing to finance the further development of the district and therefore contribute to the general development of the sector,” said Daniel Berg, the Head of the EBRD office in Tirana.
In addition, by having an EBRD representative on the Board of Tirex, the Bank will directly support the company’s efforts to set up high business and environmental standards.
Bryan Slusarchuk, CEO of Tirex Resources, said: “Today’s financing announcement represents a very significant achievement for Tirex Resources. EBRD is an ideal partner for Tirex as it adds significant value in terms of expertise in government relations, environment and community relations, and operations. Our goal is to see the development of a world-class mining district in Albania that will be materially important to the rapidly emerging Albanian economy”.
The EBRD is the largest institutional investor in Albania, having invested more than €400 million in a number of important sectors, including national infrastructure, the financial sector and the private corporate sector.
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