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Tethyan Resources surges as it closes in on Serbian acquisition

If the deal goes through, Tethyan would not only extend its existing acreage in the historic Raška lead and zinc mining district in Southern Serbia but would welcome a substantial shareholder with extensive knowledge of mining prospects in the Balkans
Acquisition
Dr Vukcevic, who is in line to become a director of Tethyan, has a distinguished 35-year career in creating and developing engineering, technical and equipment solutions for the international mining industry

Tethyan Resources PLC (CVE:TETH) is negotiating to acquire a company that holds two licences adjacent to its optioned Suva Ruda licence in Serbia.

Tethyan has entered into a binding letter of intent (LOI) to acquire Taor, a company that holds two exploration licences totalling roughly 100 square kilometres situated adjacent to the Suva Ruda licence in the historic Raška lead and zinc mining district in Southern Serbia.

The Taor licences were issued in April 2016 and are valid for an initial period of three years, with the right to be renewed for an additional five years to April 2024, at which point Serbia's mining laws require application for a mining permit.

Upon completion of the acquisition of Taor, Tethyan, will own or hold an option over around 300 square kilometres in this mining district.

The LOI gives Tethyan to negotiate, on an exclusive basis, a definitive share purchase agreement that would see the company issue 7mln Tethyan shares to Taor's current owner, Dr Radomir Vukcevic, plus €125,000 in cash on closing of the transaction; pay €125,000 in cash to Dr Vukcevic within three months of closing of the transaction; and issue 5mln Tethyan shares Dr Vukcevic on the 12-month anniversary of closing of the transaction.

All Tethyan shares issued pursuant to the transaction will be subject to a statutory hold period of four months and one day.

In addition, the two tranches of ordinary shares of Tethyan to be issued will be subject to a contractual lock-up period of twelve months following their issue to Dr Vukcevic, during which time these shares may not be transferred.

The closing of the transaction is subject to various conditions, including the completion by Tethyan of satisfactory due diligence, and the approval of the transaction by Tethyan's board of directors and shareholders and the TSX Venture Exchange.

If the deal goes through, Tethyan intends to appoint Dr Vukcevic as a director of the company and engage him as a consultant with the responsibility for overseeing the technical development of Tethyan's exploration projects.

Dr Vukcevic has agreed to provide Tethyan with a first right of refusal to acquire all mineral and mining opportunities which are or become known to him within Serbia, Bulgaria, Kosovo, Macedonia, Albania and Romania.  

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