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Cloudbreak Discovery (LSE: CDL), the natural resource project generator, has announced a joint venture agreement between Temas Resources (CSE: TMAS, OTCQB: TMASF, FSE: 26P) and Erin Ventures for the joint development of Erin Ventures’ Piskanja Borate Project located in Serbia. Cloudbreak has an 15.8% interest in Temas.

The Piskanja Project is Erin Ventures’ wholly owned boron deposit, with an indicated mineral resource of 7.8 million tonnes, averaging 31.0% boric oxide (B2O3), and an inferred resource of 3.4 million tonnes, averaging 28.6% B2O3.

Boron is an essential mineral and is found in everything from eye drops, mild antiseptics, a supplement for building stronger bones and muscles to boric acid, which is used to toughen and increase heat resistance in Pyrex.

Terms of the Agreement

Under the terms of the agreement, Temas Resources may earn a 50% interest in the Piskanja Project by issuing to Erin Ventures 250,000 common shares and 250,000 Temas warrants (each exercisable to acquire a common share for a period of 48 months from issuance, at an exercise price equal to the market price of the common shares less the maximum allowable discount pursuant to stock exchange policies) within five business days after the effective date of the Option Agreement, and by incurring an aggregate of €10,500,000 in expenditures on the Piskanja Project.

The Option Agreement may be terminated in certain circumstances, including by Erin Ventures, if certain milestones are not met in accordance with specified timelines. Upon exercise of the option by Temas Resources, a joint venture will be formed, and Erin Ventures and Temas Resources will become associated as joint venturers to further advance the Piskanja Project.

Kyler Hardy, CEO of Cloudbreak Discovery, said, “We are pleased to see Temas’ progress on this joint development agreement and look forward to seeing the commencement of the work programmes at the Piskanja Project as part of the expenditure requirements. We look forward to updating the market with further news in due course.”

Michael Dehn, President and CEO of Temas Resources, said: “At Temas, we have jointly developed a very robust exploration plan and anticipate announcing details in the coming weeks.”

Listen: Podcast with Kyler Hardy, CEO of Cloudbreak Discovery

Cloudbreak Discovery pipeline of acquisitions

Cloudbreak Discovery listed on the London Stock Exchange earlier this month on 3 June. Cloudbreak, formerly known as Imperial X PLC, holds equity positions and royalties in a variety of projects in the natural resources sectors across multiple jurisdictions, primarily in North America and Africa. The company launched on the market with the announcement of a successful £2m fundraising at 3p per share, which was oversubscribed.

Cloudbreak says the proceeds of the fundraising will be used to provide working capital to cover ongoing annual operating costs, meet develop its existing portfolio of assets and interests, and for further suitable acquisitions.

Hardy said that with the listing, he can scale up the business through a pipeline of acquisitions. “I am proud of what we have achieved in getting to this point and am excited about expanding our portfolio and providing strong returns for new and existing investors.” Cloudbreak’s business model is value accretion within a range of projects, which enables a multi-asset approach to investing, offering diversification within the mining sector and among resource classes.


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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

James Norris

James Norris

James is a highly experienced writer and editor, gained from more than 20 years in the financial services industry, in particular wealth management and asset management.

He initially worked as a financial journalist for a number of leading media brands, including the FT Group, Financial News, Euromoney and Incisive Media, covering most aspects of the asset management industry. More recently, James switched to work as an in-house content specialist for fund management and wealth management groups, including JP Morgan Asset Management, Quilter Cheviot Investment Management, AXA Investment Managers and Invesco Perpetual.

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