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Highlights

  • Middle Island Resources signs binding agreement to acquire 100% of Konstantin Resources Limited, which holds 14 licences covering 620km² in Serbia’s Western Tethyan Belt.

  • The company secures firm commitments to raise AUD 3.4 million through a placement at AUD 0.017 per share.

  • MDI shares traded 70% higher at AUD 0.034 on 2 September 2025 following the announcement.

Middle Island Resources Limited (ASX: MDI) has entered into a binding share sale and purchase agreement to acquire 100% of Konstantin Resources Limited, an unlisted Australian public company. Konstantin owns 100% of Konstantin Resources d.o.o., which holds 14 exploration and mining licences covering approximately 620 square kilometres in Serbia across the Western Tethyan Belt, one of the world’s most prolific copper-gold provinces.

Acquisition Overview

The acquisition provides Middle Island with a significant exploration portfolio comprising three main project areas:

  • Bobija Project – prospective for gold, silver, copper, lead, and zinc.

  • Priboj Project – prospective for gold and copper.

  • Timok Project – prospective for gold and copper.

The Bobija Project has returned notable historical drilling results, including:

  • 45.2m at 1.71 g/t gold, 25.5 g/t silver, 0.87% lead, and 2.26% zinc (hole BB-02).

  • 16.0m at 1.58 g/t gold, 83 g/t silver, 1.98% lead, and 2.29% zinc (hole BB-04).

  • 11.7m at 1.56 g/t gold, 82 g/t silver, 2.71% lead, and 3.01% zinc (hole BB-06).

  • 15.1m at 1.91 g/t gold, 122 g/t silver, 4.23% lead, and 4.73% zinc (hole BB-07).

  • 2.0m at 1.19 g/t gold, 29 g/t silver, 0.48% lead, and 0.39% zinc (hole BB-09).

Planned activities include an RC drilling campaign at Bobija, trenching and rock chip sampling in the Bobija mine pit, and a geochemistry program covering soil, stream, and rock sampling across multiple project areas.

Funding and Placement

Concurrent with the acquisition, Middle Island has received firm commitments to raise AUD 3.4 million through a placement of 200 million shares at AUD 0.017 per share. The placement price represents a 14% discount to the August volume-weighted average price (VWAP). Cygnet Capital acted as the sole Lead Manager to the issue. Proceeds from the placement will support ongoing and planned exploration activities at the Serbian projects.

Management and Strategy

The Konstantin team includes experienced industry professionals with backgrounds at Dundee Precious Metals, WMC, and Orbis, including David Aizzeddin, Dragan Dragic, and Peter Spiers. Middle Island stated that the acquisition of Konstantin complements its existing projects in Australia, namely the Ridgelands Gold Project in Queensland and the Barkly Copper-Gold Project in the Northern Territory.

The acquisition and placement are subject to shareholder approval under ASX Listing Rule 11.1.2, with a shareholder meeting expected in mid-to-late October 2025.

Market Response

On 2 September 2025, Middle Island Resources’ shares traded 70% higher at AUD 0.034 per share following the announcement of the acquisition and capital raising.