Balkan Mining and Minerals is poised to list on the ASX this Wednesday with the ticker BMM after closing a initial public offering of 32.5 million shares priced at 20c each to raise $6.5m.

Jadar Resources (ASX:JDR), which spun-out its Serbian lithium and borate assets into Balkan to focus on its precious metals portfolio in Latin America and lithium assets in Austraia, will hold a 22% interest in the company

Sandfire Resources (ASX:SFR) will also be a cornerstone investor through a $2m investment.

Proceeds from Balkan’s IPO will be used for exploration on its Serbian assets with a focus on the Rekovac project.

The Rekovac lithium and borate project is within the Vardar Zone, an emerging Tier 1 lithium borate jurisdiction in central Serbia.

The project is within a geological setting similar to Rio Tinto’s world-class Jadarite discovery – one of the world’s largest lithium and borate deposits with an ore reserve of 16.6Mt grading 1.81% lithium oxide and 13.4% boron trioxide.

Borate and lithium mineralisation was observed in the two stratigraphic diamond drill holes drilled by Jadar to date, confirming the potential for Rekovac to host a large mineralised system.

Exploration by Balkan over the next two years will include planning, acquiring and interpretating new gravity and magnetic data; detailed geological mapping and relogging of drill core; and drilling to test targets developed by the previous work.

Balkan projects

Balkan’s other projects are the Dobrinja and Pranjani licence areas in western Serbia about 90km south-southwest of Belgrade.

Earlier studies carried out by the Yugoslavian Geological Survey identified favourable lacustrine strata for hosting lithium and boron within the licensed areas, which has been supplemented by Jadar´s desktop studies that identified the basin’s potential.

Work on the licences that make up Dobrinja and Pranjani will focus on early-stage reconnaissance activities aimed at determining the potential for borate and lithium mineralisation.