Tethyan Resources (CVE:TETH) announced today that it has signed an agreement to amend its current option to acquire the Suva Ruda exploration license in Serbia.
The amendment would have recently-acquired Taor d.o.o enter into a joint venture with Serbian company Deep Research d.o.o., which holds the Suva Ruda exploration licence.
In 2016, the company entered into the option agreement with Deep Research. Tethyn would have the rights to manage and perform mineral exploration and could purchase either the entire issued share capital of Deep Research, or the license for €6 million (with possible additional payments).
Additionally, a number of work and payment milestones were committed to.
Tethyan recently announced its acquisition of Taor d.o.o., and in the amended agreement will have Taor enter into a joint venture agreement with Deep Research with respect to a defined geographical area within the license. The company will also pay Deep Research €100,000 within 15 days of signing the agreement and agree not to acquire the company but instead to acquire the license if the option contemplated in the option agreement is exercised.
The geographical area is an area that surrounds Taor's 'Kremice' exploration license, where Tethyan believes there is potential for the discovery of significant lead-zinc-silver deposits.
The company said if the joint venture agreement is signed, the option agreement will remain in effect outside of the area of interest.
Tethyan shares were flat at C$0.25 on Thursday afternoon.