JERSEY, UK, July 3, 2018
/CNW/ - Tethyan Resources plc (TSXV:TETH)
("Tethyan" or the "Company") is pleased to announce
that it has closed the acquisition of all of the issued and
outstanding share capital of Serbian company Taor d.o.o.
("Taor") as described in the Company's information circular
dated May 18, 2018, and in the
Company's news releases dated February 14,
2018 and March 20, 2018 (the
"Transaction").
The Company has commenced an initial 1,000 m drill programme at the priority Kizevak
zinc-lead-silver brownfield target, and announces the results of
soil sampling on the newly acquired exploration licenses.
Highlights
- The acquisition of Taor's exploration licenses (ELs), located
adjacent to Tethyan's Suva Ruda project, increases Tethyan's
landholding to a total of 443 km2 in Southwest Serbia
and Northern Kosovo (Figure 1)
- The exploration licenses are located in the northern part of
the Trepca mining district. 'Trepca' was the largest
lead-zinc-silver mining complex in Yugoslavia during the 1970s and remains
prospective for lead-zinc-silver discoveries as well as porphyry
copper-gold mineralisation such as at Tethyan's Rudnica porphyry
project
- The 1,000 m drilling programme is
targeting zinc-lead-silver mineralisation identified by historical
exploration and along strike from the inactive Kizevak open-pit
mine, which is currently held by a third party
- Internationally respected metallurgist Dr Radomir Vukcevic has been appointed to the Board
of Directors of Tethyan
- Soil and rock sampling recently completed on the Taor licenses
returned multiple zinc-lead-silver and gold-copper anomalies, which
include:
-
- Kizevak targets (brownfield target adjacent to
past-producing zinc-lead-silver mine):
-
- Kizevak south-eastern soil anomaly: immediately along
strike from the historic Kizevak open pit mine (currently held by a
third party) the anomaly is defined by a 500 by up to 260 m zinc-lead-silver soil anomaly (500-2380 ppm
zinc, 500-8000 ppm lead, 2-18 ppm silver). The 1,000 m drill programme has commenced in this
area (Figure 2)
- Kizevak southern soil anomaly: located 800 m south of the Kizevak open pit, the anomaly
is defined by a 1,300 by 150 m
lead-zinc soil anomaly and coincident 400 by 290 m gold-silver soil anomaly (500-8780 ppm
zinc, 500-23,100 ppm lead, 40-220 ppb gold, 5-34 ppm silver)
- Sastavci gold-silver-lead-zinc target: defined by a 290
by 230 m gold-silver-lead-zinc soil
anomaly (50-240 ppb gold, 5-52 ppm silver, 1500-62,400 ppm lead,
250-3450 ppm zinc) situated 500 m
north of the historic Sastavci mine and is open to the east (Figure
3)
- Bukovik Lithocap: defined by a 780 by 400 m copper-rich and zinc-poor soil anomaly and
other porphyry/epithermal pathfinder elements, the geology and
geochemistry is indicative of a high-sulphidation system or the
upper levels and/or shoulder of a potential porphyry system (Figure
3)
- Lipovica: a lead-zinc soil anomaly coincident with
historical workings on veins over a 1 km strike length. Tethyan
collected three rock-chip samples from a waste dump at an historic
adit, which returned between 0.7 and 54.9 g/t silver, 0.1 to 4.6 %
lead and 0.1 to 4.2% zinc (Figure 3)
- Plavkovo: Located 1 km south of the Rudnica porphyry,
outcropping alteration and mineralisation over a 2 km strike length
returned a broad zinc in soil anomaly and results of three
rock-chip samples returned between 0.36 and 6.46 g/t gold, and 11.8
and 65.7 g/t silver (Figure 3)
Fabian Baker, President and CEO
of Tethyan commented: "We see the acquisition of Taor as a pivotal
moment for Tethyan. Tethyan now controls a very significant land
package in a historic mining district that includes multiple
historic zinc-lead-silver and copper-gold exploration targets, as
well as previously-producing small-scale mines. During the process
of finalising the acquisition, Tethyan was granted the right to
begin permitting for a drill programme, and it is a testament to
our local team and the support of the local communities that we
were able to secure the required permissions and build the drill
pads in a matter of weeks. We have immediately commenced a 1,000
metre drill programme within an area of historical exploration
targets, along-strike from the past-producing Kizevak mine."
For further detail regarding the soil sampling results and the
various historical exploration targets now acquired by Tethyan,
please visit our website at:
https://www.tethyan-resources.com/our-projects
Appointment of Director and Vice-President –
Development
In accordance with the terms of the acquisition of Taor, Dr.
Radomir Vukcevic has been appointed
a director of the Company and he will assume the role of
Vice-President – Development, in order to oversee and implement
metallurgical, mining and processing evaluations and planning on
the Company's exploration targets as we progress them towards
development.
Dr. Vukcevic has a distinguished 35-year career in creating and
developing engineering, technical and equipment solutions for the
international mining industry. He holds a PhD in metallurgy from
the Technical University of Clausthal, Germany, and a bachelor and master's degree in
metallurgy, and, has many industrial patents for mining-related
technologies. Dr. Vukcevic has taught metallurgy at a number of
universities, he was associate professor and professor at RMIT
University in Melbourne,
Witwatersrand University in Johannesburg and the University of
Western Australia in Perth. Dr. Vukcevic's has held a number of
senior international positions including: General Manager, Large
Equipment and Construction Materials with Alcoa World Alumina in
Melbourne, Perth, and Pittsburgh; General Manager, Equipment, at
Murrin Murrin, one of the world's largest nickel laterite and
cobalt processing facilities; CEO/Principal, Mineral Processing and
Marketing, with Australia Ltd.; and Chairman of the Supervisory
board of the Niksic Steel Mill a specialty steel plant in
Montenegro.
Dr. Vukcevic has also agreed to enter into a relationship
agreement with the Company which will, among other things, procure
that the voting rights attached to the shares will be exercised in
such a manner as to ensure that the Company will carry on its
business independently of Dr. Vukcevic and for the benefit of all
shareholders, and that he will not, without the Company's consent,
purchase additional shares in the Company if doing so would cause
his ownership in the Company to exceed 19.9% of its issued and
outstanding share capital.
Details of the Transaction
Pursuant to the Transaction, the Company issued 7,000,000
ordinary shares to Dr. Radomir
Vukcevic, which represents approximately 15.78% of the
current issued and outstanding ordinary shares of the Company, and
paid €125,000 cash as consideration for Taor. The Company
also agreed to pay Dr. Vukcevic €125,000 in cash on the date being
90 days after the closing of the Transaction, and issue an
additional 5,000,000 ordinary shares in the capital of the Company
on the 12 month anniversary of closing the Transaction. All
Tethyan ordinary shares issued pursuant to the Transaction will be
subject to a statutory hold period of four months and one day
following the date of issuance thereof. 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 these shares may not be
transferred.
Loan Conversion
The Company also announces that it has completed the loan
conversion with Southern Arc Minerals Inc., a control person of the
Company, and Michael Andrews, a
director of the Company, as more particularly described in the
Company's news release dated April 26,
2018.
Quality Assurance and Quality Control
The soil and rock-chip sampling program and sampling protocols
were supervised by Tethyan's Exploration Manager, Mr. Andrew Tunningley MAusIMM(CP), who is a
Qualified Person as defined by National Instrument 43-101. Quality
Assurance is provided through provision of standard operating
procedures for the collection and submission of samples as well as
data handling and management. Quality Control is monitored through
the insertion of one pulp duplicate sample per batch of 40 soil or
rockchip samples. All samples are securely transported from the
project site to the ALS Global sample preparation laboratory in
Bor, Serbia by Tethyan vehicle and personnel. Rockchip sample pulps
are then sent to ALS Rosia Montana, Romania by air freight for gold. Gold is
analysed by fire assay with AAS finish and sent to ALS Loughrea,
Ireland by freight for analysis by
a four-acid digestion with ICP-AES finish to analyse a full suite
of 33 elements including silver and base metals. Soil sample pulps
are sent to ALS Loughrea, Ireland
by freight for analysis by super-trace gold ICP-MS and 41
multi-element ultra-trace aqua regia ICP-MS. ALS's laboratory is
ISO 2005 accredited and employs a Laboratory Information Management
System for sample tracking, quality control and reporting.
Early Warning
In connection with the Transaction, Dr. Vukcevic of 31 Hampton
Road, Fremantle, WA, Australia,
6160 acquired 7,000,000 ordinary shares, representing approximately
15.78% of the issued and outstanding ordinary shares of the
Company. Immediately prior to the Transaction Dr. Vukcevic did not
own any ordinary shares of the Company. Following the Transaction,
Dr. Vukcevic now owns 7,000,000 ordinary shares representing
approximately 15.78% of the current issued and outstanding ordinary
shares of the Company. The foregoing acquisition has resulted
in a 15.8% change in Dr. Vukcevic's ownership of ordinary shares on
a non-diluted basis. Dr. Vukcevic does not own or control any
convertible securities of the Company.
Pursuant to the Transaction, Dr. Vukcevic was issued the
7,000,000 ordinary shares at a deemed price of $0.25 per share representing a value of
$1,750,000 as part of the
consideration for the entire share capital of Taor. Other
than the 5,000,000 ordinary shares issuable to Dr. Vukcevic on the
12 month anniversary of the Transaction (as disclosed above), Dr.
Vukcevic has no present intention to dispose of or acquire further
securities of the Company. Dr. Vukcevic may, in the future
participate in financings and/or acquire or dispose of securities
of the Company in the market, privately or otherwise, as
circumstances or market conditions warrant.
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
Certain information contained herein constitutes
"forward-looking information" under Canadian securities
legislation. Generally, forward-looking information can be
identified by the use of forward-looking terminology such as
"intends", "look forward" or variations of such words and phrases
or statements that certain actions, events or results "will" occur.
Forward-looking statements regarding the Company's proposed
sampling and mapping activities over the licenses and alteration
zones and Company's placing geologists on the ground to commence
exploration are based on the opinions and estimates of management
as of the date such statements are made and they are subject to
known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or
achievements of Tethyan to be materially different from those
expressed or implied by such forward-looking statements or
forward-looking information, including: the receipt of all
necessary regulatory approvals, capital expenditures and other
costs, and financing and additional capital requirements. The
Company's future activities are limited by its current capital
resources. Although management of Tethyan have attempted to
identify important factors that could cause actual results to
differ materially from those contained in forward-looking
statements or forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove
to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements and forward looking information. Tethyan will not update
any forward-looking statements or forward-looking information that
are incorporated by reference herein, except as required by
applicable securities laws.
SOURCE Tethyan Resources PLC