/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION
IN CANADA ONLY AND IS NOT
AUTHORIZED FOR DISTRIBUTION TO UNITED
STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES./
JERSEY, UK, Nov. 14, 2017 /CNW/ -
Tethyan Resources plc (TSXV: TETH) ("Tethyan"
or the "Company") is pleased to announce the terms of a
private placement of up to $3.15
million comprising up to 10.5 million ordinary shares at
$0.30 per ordinary share on a
post-consolidated (1:6) basis. Southern Arc Minerals Inc.
(TSXV: SA) ("Southern Arc") intends to invest up to
$950,000 and acquire up to 3.167
million ordinary shares under the private placement.
The closing of the private placement is subject to the
completion of the previously announced share consolidation (on the
basis of 1 new ordinary share for each existing 6 ordinary shares)
and the approval of the TSX Venture Exchange. The Company may
pay a 6% finder's fee in cash and 6% in warrants in connection with
the financing. Each warrant will be exercisable for 2 years
from the closing date at a price of $0.30 per post-consolidated ordinary share.
The ordinary shares and the warrants issued to finders (and shares
underlying the finder's warrants) pursuant to the private placement
will be subject to a four-month hold period from the date of
closing in accordance with applicable securities legislation.
The net proceeds from the private placement will be used to
finance Tethyan's planned drilling program at the Rudnitza
copper-gold porphyry prospect in early 2018, as well as to advance
other earlier-stage prospects toward the identification of new
drill targets and for general working capital.
Southern Arc presently owns 29.9% of the issued and outstanding
ordinary shares of Tethyan on an undiluted basis and will not
exceed that percentage on closing of the private placement. The
proposed private placement by Southern Arc will be a "related party
transaction" within the meaning of Multilateral Instrument 61-101
Protection of Minority Security Holders in Special
Transactions ("MI 61-101") by virtue of Southern Arc
being a "control person" of Tethyan. The private placement is
exempt from the formal valuation requirements of MI 61-101 pursuant
to section 5.5(b) thereof and is exempt from the minority
shareholder approval requirements by virtue of section 5.7(a)
thereof.
About Tethyan
Tethyan Resources plc is a gold and base metal mineral
exploration company incorporated in England & Wales. Tethyan is focused on the Tethyan
Metallogenic Belt in Eastern
Europe, mainly Serbia, where it is acquiring and exploring a
portfolio of quality precious and base metals projects with known
mineralisation and compelling drill targets. Tethyan emphasises
responsible engagement with local communities and stakeholders, and
is committed to proactively implementing Good International
Industry Practice (GIIP) and sustainable health, safety and
environmental management.
More information can be found on our website:
www.tethyan-resources.com.
TSX Venture Exchange Disclaimer
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as such term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Forward Looking Statements
This news release contains forward-looking statements
relating to: completion of the proposed private placement,
completion of the proposed share consolidation and receipt of
regulatory approval for the private placement. These
statements are subject to certain risks and uncertainties, such as,
the regulatory process and actions, new legislation and
uncertainties resulting from potential delays or changes in plans.
Actual results achieved may vary from the information provided
herein as a result of numerous known and unknown risks and
uncertainties and other factors.
SOURCE Tethyan Resources PLC