Yugo Metals Locks in Six-Year Land Access Clearing the Way for Petrovo Nickel Drilling
Key Takeaways
- Yugo Metals has secured a six-year lease over 18,227m² at Petrovo that covers the planned drill sites and the key 1969 historical collars.
- Access costs EUR300,000 cash plus 18,000,000 shares escrowed for 24 months, keeping cash for drilling, though the announcement discloses no value for the shares.
- An IP survey starts next week, with twin drilling at Petrovo targeted for Q2 FY27, subject to any required drilling approvals.
- An exclusive option to buy the land for EUR400,000 plus 20,000,000 shares offers an ownership pathway, but only with shareholder and regulatory approvals.
- The drilling targets historical results of 5.1m @ 6.6% Ni and 9.35m @ 8.2% Zn+Pb from 1969, which the company says should be treated with caution.
Land access secured for Petrovo drilling at St Nicholas
Yugo Metals (ASX:YUG) has signed a Land Access and Lease Agreement covering 18,227m² (1.82 hectares) of private land for a six-year term at the Petrovo Tenement, part of the St Nicholas project in Bosnia and Herzegovina (Republic of Srpska). The land hosts the planned drill sites and the key historical drill collars from the 1969 program.
Surface access is now in place ahead of the Company’s first drilling at Petrovo. An IP (induced polarisation) geophysical survey starts next week, with drilling to follow the results in Q2 FY27, subject to any required drilling approvals.
For investors, the announcement states that securing the land removes a key pre-drilling hurdle and protects the Company’s position over the drill area for the long term.
Petar Tomašević, Executive Director & CEO
“Securing private land access is an early challenge for explorers in the Balkans. At Petrovo, we have overcome it through a six-year agreement covering the planned drilling area.”
The CEO’s commentary then describes the purchase option, before continuing:
Petar Tomašević, Executive Director & CEO
“Paying a large part of the access consideration in escrowed shares preserves our cash for drilling and gives the landowner a stake in our success. We look forward to getting the rig turning at Petrovo.”
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Key terms of the Land Access and Lease Agreement
The agreement is between Yugo Metals’ wholly owned Bosnian subsidiary, Lykos Balkan Metals d.o.o. (Lykos Balkan), the registered Land Owner, Bellator B d.o.o. Bijeljina, and its parent, Bellator d.o.o. Beograd (Bellator Beograd). Yugo Metals is also a party as parent of Lykos Balkan and issuer of the consideration shares.
| Term | Detail |
|---|---|
| Term | Six years from the effective date of 5 October 2026 |
| Land | Three cadastral parcels in the Cadastral Municipality of Sočkovac, Republika Srpska, totalling 18,227m² |
| Permitted activities | Access, exploration, drilling, sampling, geophysical surveys and, subject to holding all required licences and permits, mining, processing and related activities. Access rights are non-exclusive |
| Access consideration | EUR300,000 cash (paid in AUD equivalent) plus 18,000,000 fully paid ordinary Yugo Metals shares. Non-refundable |
| Escrow | Consideration Shares subject to voluntary escrow for 24 months from issue, with a holding lock applied |
The cash portion is funded from existing cash reserves. The 18,000,000 shares will be issued using the Company’s placement capacity under ASX Listing Rule 7.1, and the consideration recipient is Bellator Beograd. Both elements are due within five business days of the effective date, once Bellator Beograd has signed a voluntary restriction deed.
The announcement does not disclose a share price or implied value for the shares.
During the term, the agreement restricts the Land Owner from:
- selling or transferring the land to anyone other than Lykos Balkan
- granting options or pre-emptive rights over it
- encumbering it in a way that would prejudice Lykos Balkan’s rights
That protection matters because it stops the ground under the drill sites being sold or tied up while exploration proceeds.
Option to purchase the land
Separately from the access arrangements, Lykos Balkan holds the exclusive option to buy all of the land at any time during the term, or within 30 days after it ends. The option price is EUR400,000 in cash (AUD equivalent) plus 20,000,000 Yugo Metals shares.
Keep the two sets of figures apart. The access consideration is EUR300,000 and 18,000,000 shares. The option price is a different EUR400,000 and 20,000,000 shares, and is only payable if the option is exercised.
The issue of the option shares and completion are subject to shareholder and any required regulatory approvals. Completion is to occur within 60 days of exercise, documented under a separate definitive land purchase agreement. No shares will be issued under the option unless it is exercised and the required approvals are obtained.
Why surface rights matter to explorers
Owning minerals underground is not the same as being able to reach them. Surface rights decide who can put a drill rig, track or pad on the ground.
This agreement gives access for a set period, while the option offers a pathway to ownership. The CEO said that, subject to drilling confirming the historical results and the project advancing toward feasibility study and mining consideration, Yugo will have the exclusive right to purchase the land.
Mining and processing on the land remain subject to all required licences and permits. The agreement does not itself deliver mining approval.
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Petrovo’s drilling story and next steps
The Petrovo tenement was granted to Yugo earlier in 2026 following consultation with the local community and the Government. It covers an area of historical 1969 shallow drilling.
Those historical results, which should be treated with caution given their age, were:
- 5.1m @ 6.6% Ni from 57.9m (cobalt not analysed)
- 9.35m @ 8.2% Zn+Pb from 41.8m (silver and gold not analysed)
More recent surface rock-chip sampling returned results of up to 5.7g/t gold and 1,330g/t silver. Rock-chip samples are pieces of rock taken from the surface, so they show where metals occur but do not measure what lies at depth.
The planned programme includes twin drilling to confirm the historical intercepts, followed by drilling to test extensions of the nickel mineralisation. A twin hole is drilled beside an older hole to check whether it returns similar results.
The announcement lists these planned next steps:
- Payment of the cash consideration and issue of the Consideration Shares (subject to escrow)
- Access track and drill pad preparation at Petrovo
- IP survey, then twin drilling at Petrovo to test the historical nickel intercepts
- Drilling continuing at the Golden Hills and Monte Projects
Access is secured, cash is preserved for drilling through the share-based consideration, and the option provides an ownership pathway if exploration succeeds. The first drilling programme at Petrovo, expected in Q2 FY27 and subject to any required drilling approvals, will show whether the historical results hold up.
Ready to Learn More About Yugo Metals’ Petrovo Drilling Plans at St Nicholas?
Yugo Metals has secured six-year land access over the planned Petrovo drill sites, with an IP survey starting next week and drilling to follow in Q2 FY27. The programme aims to test historical 1969 intercepts, including 5.1m @ 6.6% Ni, and could reveal whether those results hold up.
Explore the Yugo Metals (ASX:YUG) company profile to see the latest updates on the St Nicholas project. Discover how the Petrovo drilling programme fits into the company’s wider exploration strategy in Bosnia and Herzegovina.