BELGRADE (Serbia), May 11 (SeeNews) – UK-based Adriatic Metals has executed a binding letter agreement to acquire the entire capital of Tethyan Resource, a developer of zinc-lead-silver projects in Serbia, Adriatic Metals said on Monday.
In conjunction with the transaction, the two companies have entered into a convertible loan agreement, whereby Adriatic Metals has agreed to advance to Tethyan Resource a secured convertible loan in the amount of up to 1.3 million euro in tranches, Adriatic Metals said in a statement.
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The transaction will confirm the enlarged company as the leading Balkan polymetallic explorer and developer with four key projects (Rupice, Veovaca, Kizevak and Sastavci) covering a total land package in excess of 301 square kilometres across Bosnia and Serbia, Adriatic Metals said.
The 1.3 million euro loan will be used by Tethyan Resources to finance the acquisition of Serbian company EFPP, holder of the two exploration licenses comprising the central parts of the Kizevak and Sastavci deposits in Serbia.
"Tethyan Resource Corp. has been successful in consolidating the Raska district in Serbia, and with the recent addition of the Kizevak and Sastavci licenses, the acquisition presents a unique opportunity for Adriatic to add assets to our portfolio that have the potential, over time, to match the quality of our exceptional Vares Project in Bosnia," the CEO of Adriatic Metals, Paul Cronin, said.
Adriatic Metals plans to rapidly advance the past-producing Kizevak and Sastavci polymetallic mines, in the Raska district of southwestern Serbia towards a maiden Joint Ore Reserves Committee-compliant resource by the end of 2020, the company noted.
Adriatic Metals is present in Bosnia via wholly-owned subsidiary Eastern Mining. It runs the Vares project, which comprises a historic open cut zinc/lead/barite and silver mine at Veovaca and Rupice, an advanced proximal deposit that exhibits exceptionally high grades of base and precious metals.