Zijin Raises Stake in Strickland’s Serbian Rogozna Gold Project

Zijin Mining Group has increased its ownership position in Australian-listed Strickland Metals to 7.4%, strengthening its exposure to the Rogozna gold and polymetallic project in Serbia while the explorer continues to face regulatory delays and local opposition affecting market confidence.

Strickland Metals controls Rogozna through its Serbian subsidiary Zlatna Reka Resources. The project covers approximately 184 square kilometres near Novi Pazar and includes four exploration licences containing mineralisation of gold, copper, silver, lead and zinc.

The latest increase in Zijin’s shareholding was completed through open-market purchases of Strickland shares. Zijin’s stake stood at 5.55% in April 2026, meaning the Chinese mining group has continued increasing its exposure while Strickland’s valuation remained under pressure from uncertainty surrounding exploration approvals in Serbia.

Zijin Expands Strategic Exposure to Serbian Minerals

The increase in ownership represents a relatively small financial commitment for Zijin but provides strategic exposure to a major undeveloped Serbian mineral asset. The Chinese group already operates Serbia’s largest copper and gold production platform around Bor and Majdanpek, including the Čukaru Peki underground mine, giving it mining expertise, processing capabilities, equipment resources and financial capacity relevant to large-scale mineral development.

Zijin’s increased stake does not provide operational control over Rogozna, and neither company has announced an acquisition agreement or joint-development arrangement. The investment makes Zijin a more significant shareholder in Strickland and gives it a potential long-term position in a large gold-rich mineral system.

Strickland currently reports a Rogozna mineral resource of approximately 9.25 million ounces of gold equivalent, equal to nearly 289 tonnes, with an average grade of approximately 1.33 grams per tonne. The resource is spread across four main deposits: Shanac, Gradina, Medenovac and Copper Canyon.

Rogozna Development Focuses on Multiple Deposits

The Shanac deposit represents the largest mineralised zone within Rogozna, containing approximately 5.35 million ounces of gold equivalent. Its updated resource includes an indicated component of approximately 1.25 million ounces, improving geological confidence for future development studies.

The Gradina deposit presents a different development opportunity, with a stronger gold profile and approximately 1.2 million ounces of resources. Initial estimates included around 12 million tonnes at 3 grams of gold per tonne, based on a 1.5 grams-per-tonne cut-off grade.

The combination of Shanac’s scale and Gradina’s higher-grade mineralisation provides Strickland with several possible development strategies. The company could initially focus on smaller-scale production from shallow or higher-grade areas before expanding processing capacity as exploration results, permitting progress and operational performance improve.

Broker Shaw and Partners expects the first pre-feasibility study to focus on a relatively shallow Gradina development with initial processing capacity of between 1.5 million and 2 million tonnes of ore annually. Completion of the study is now expected toward the end of 2027, compared with previous company guidance indicating the first half of that year.

Development Costs Depend on Mining Scale and Processing Design

A phased development approach would reduce initial capital requirements compared with building a full-scale integrated mining complex immediately. However, even an initial operation would require significant work on metallurgy, tailings design, water management, electricity supply, transport infrastructure and environmental assessment. A preliminary mine processing 1.5 million to 2 million tonnes annually could require several hundred million euros of investment once mining infrastructure, processing facilities, tailings storage, grid connections, water systems and access infrastructure are included.

The final cost would depend on whether the first phase operates as a standalone gold project or forms the initial stage of a larger polymetallic operation recovering copper, silver, lead and zinc. Multiple payable metals could improve project economics but would also increase processing complexity. Metallurgical recovery rates, concentrate quality, impurity levels and the choice of domestic or international processing routes will be key factors in determining commercial viability.

Strickland Strengthens Funding Position for Exploration

Strickland entered 2026 with additional financial resources after completing an institutional placement in February, raising A$55 million through the issue of approximately 343.2 million shares at A$0.16 each. The company said the funds were intended primarily to support a 70,000-metre drilling programme at Rogozna and advance the project toward pre-feasibility.

Zijin participated in the financing with an additional A$5 million. The Chinese company had initially invested A$5 million in Strickland through a strategic placement announced in April 2025, when it acquired approximately 2.4% of the company. Additional participation in the February capital raising and subsequent market purchases increased Zijin’s ownership first to 5.55% and then to 7.4%. The investment activity occurred while Strickland’s share price declined by approximately 40% over the previous year, reflecting investor concerns over the difference between Rogozna’s geological scale and its near-term regulatory and development outlook.

Australian brokerage valuations have placed a base estimate of around A$0.20 per share for Strickland, increasing to A$0.30 if permitting and project risks are reduced. This compares with a recent market price of approximately A$0.085, indicating a substantial discount applied by investors.

Permitting Delays Affect Project Timeline

The valuation gap reflects standard exploration-stage risks, including additional drilling requirements, uncertain metallurgy, rising capital costs, possible future shareholder dilution and the long timeline before potential production. For Rogozna, these risks have been increased by delays in obtaining approvals for planned exploration activities and opposition from some local residents and environmental organizations.

The local group Ne damo Rogoznu has stated that planned 2026 drilling had not received required approvals. Campaigners have organized road and equipment blockades and raised concerns regarding water resources, land use, waste management and the potential long-term impact of industrial mining in the Rogozna mountain area. Strickland’s Serbian subsidiary has rejected claims that exploration has been abandoned or formally suspended. The Serbian Ministry of Mining and Energy has stated that administrative decisions will be made according to applicable legal procedures and independently from individual companies’ commercial plans.

The distinction between exploration rights and approval for specific drilling activities remains important. An exploration licence does not automatically authorize unrestricted drilling at every location or on any timetable. Individual activities depend on technical documentation, land access, environmental conditions and administrative approvals.

Zijin’s Serbian Mining Platform Provides Potential Advantages

Delays in exploration have direct commercial consequences because they slow resource conversion, postpone metallurgical testing and affect pre-feasibility schedules. Any extension of the exploration and study period delays potential construction decisions and reduces the present value of future production. Before mining could begin, Rogozna would require extensive permitting, including environmental assessments, water-management solutions, land-access arrangements, spatial planning approvals and public consultation. Tailings management and protection of surface and groundwater resources are expected to be among the most important technical considerations.

Zijin’s growing role at Rogozna brings industrial capabilities but also increased attention because of its existing Serbian mining operations. The company acquired control of the former RTB Bor complex in 2018, developed Čukaru Peki and expanded copper and gold production in eastern Serbia. Its two main Serbian businesses produced approximately 300,000 tonnes of copper and 250,000 ounces of gold in 2024.

Zijin is also preparing a broader investment cycle involving the Lower Zone of Čukaru Peki, related processing facilities and the Malka Golaja copper-gold deposit. A previously announced development framework included up to $3.8 billion of additional investment and a proposed 300 MW solar project intended partly to support industrial electricity demand.

Future Zijin Role Depends on Permitting and Project Economics

Zijin’s Serbian operations provide potential advantages if it increases its involvement in Rogozna. The company already has experience with Serbian permitting processes, relationships with national and local institutions and access to specialized mining personnel. It could also evaluate whether Rogozna production could eventually connect with its wider Serbian metallurgical system, depending on mineral characteristics, transport costs and processing compatibility.

Any expanded role would also attract scrutiny regarding environmental management, land acquisition, labor practices and concentration of mining ownership. A future acquisition or operating partnership would require clear approaches to water protection, tailings safety, monitoring systems and local economic participation. For Strickland, Zijin’s 7.4% stake provides strategic backing without resolving the project’s regulatory challenges. The investment could support expectations that Zijin may eventually seek a larger position, negotiate supply arrangements, participate in project financing or pursue an acquisition after geological and permitting risks decline.

The next major valuation step for Rogozna will depend on Strickland’s ability to restart planned drilling, increase geological confidence and establish a technically viable development pathway. Zijin’s continued share purchases indicate interest in the resource potential, while the project’s future will depend on permitting progress, engineering studies and engagement with communities around Novi Pazar.