JERSEY, UK, June 14, 2018 /CNW/ -
Tethyan Resources plc (TSXV: TETH) ("Tethyan"
or the "Company") is pleased to announce that it has signed
an agreement to amend (the "Amending Agreement") the current
option to acquire the Suva Ruda exploration license in Serbia.
Background to the Option Agreement
Tethyan entered into the option agreement (the "Option
Agreement") in September 2016
with a Serbian company Deep Research d.o.o. ("DR"), which
holds the Suva Ruda exploration license (the
"License"). Pursuant to the terms of the Option
Agreement, Tethyan holds the exclusive right to manage and perform
mineral exploration throughout the License. Tethyan can elect
at any time to purchase either the entire issued share capital of
DR or the License in consideration for €6 million to DR and
possible additional payments related to mine CAPEX as further
detailed in Tethyan's press release dated September 27, 2016. Additionally, in order for
Tethyan to maintain the option, Tethyan is committed to a series of
work and payment milestones. The payment milestones are:
(a)
|
€100,000 by March 1,
2017 (paid);
|
(b)
|
€100,000 on or before
September 13, 2017 (paid)
|
(c)
|
€100,000 on or before
September 13, 2018
|
(d)
|
€100,000 on or before
September 13, 2019
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Pursuant to the Amending Agreement, the Company will:
(a)
|
pay the €100,000,
previously due on September 13, 2018, within 15 days of signing the
Amending Agreement;
|
(b)
|
agree not to acquire
DR but instead to acquire the License if the option contemplated in
the Option Agreement is exercised; and
|
(c)
|
upon completion by
Tethyan of the acquisition of Taor d.o.o. ("Taor"), cause
Taor to enter into a joint venture agreement (the "JV
Agreement") with DR with respect to a defined geographical area
within the License (the "Area of Interest") which will be
excluded from the terms of the Option Agreement and become subject
to the terms of the JV Agreement.
|
The Area of Interest will cover an area of the License that is
surrounding Taor's 'Kremice' exploration license, where Tethyan
believes there is potential for the discovery of significant
lead-zinc-silver mineralisation along-strike from historical
results within the Kremice license. As such the predominant
intention of the Amending Agreement and the proposed JV Agreement
is to allow Tethyan to obtain the rights to define, advance and
ultimately obtain majority ownership of lead-zinc-silver
mineralization without exercising the Option, as well as aligning
its commercial interests with DR in the
region.
If the Joint Venture Agreement is signed, the Option Agreement
will remain in effect throughout the License outside of the Area of
Interest, and as such the Option Agreement will continue to apply
to areas such as the Rudnica and Kremice copper-gold porphyry
exploration targets.
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.
Qualified Person
The technical information in this news release has been reviewed
and approved by Tethyan's Exploration Manager, Andrew Tunningley, MAusIMM(CP), who is a
Qualified Person as defined by National Instrument 43-101.
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 expected or anticipated future events and anticipated
results that are forward-looking in nature, including with respect
to the Transaction and the proposed Joint Venture and any
completion thereof, and, as a result, are subject to completion of
due diligence, board and regulatory approval, general economic,
market and business conditions, , new legislation, uncertainties
resulting from potential delays or changes in plans, policital
uncertainties, and the state of the securities markets
generally.. Actual results achieved may vary from the information
provided herein as a result of these known and unknown risks and
uncertainties.
SOURCE Tethyan Resources PLC