BELGRADE (Serbia), May 15 (SeeNews) – UK-based gold and copper miner Tethyan Resource has closed the acquisition of 10% stake in Serbian company EFPP, holder of two silver-zinc-lead exploration licences in the country, and an exclusive right to purchase the remaining 90% within 12 months, it said.
Tethyan will pay to the seller a total of 625,000 euro ($675,900) cash for the 10% stake, while the payment for the 90% shareholding interest in the company will amount to 1.375 million euro plus a deferred cash payment of 500,000 euro on the two-year anniversary of first transaction, the company said in a statement on Thursday.
You can subscribe to our M&A newsletter here
The acquisition of EFPP, which owns the Kizevak and Sastavci silver-zinc-lead mines in the Raska district of southwestern Serbia, completes the consolidation of a district of known silver-zinc-lead vein-type and copper-gold porphyry deposits, presenting numerous strategic advantages, Tethyan said.
"With the recently announced financing and proposed acquisition of Tethyan by Adriatic Metals plc, we are well funded to commence drilling at Kizevak, which is planned to begin in early June. We see a bright future for the Raska mining district that is now consolidated under Tethyan, and look forward to developing the potential of these former mines and the significant exploration potential around them," Tethyan’s President and CEO, Fabian Baker, noted.
The acquisition of EFPP is a key condition precedent for the proposed acquisition of Tethyan by Adriatic Metals plc, Tethyan said.
Earlier this week, UK-based Adriatic Metals said it has executed a binding letter agreement to acquire the entire capital of Tethyan. In conjunction with the transaction, the two companies have entered into a convertible loan agreement, whereby Adriatic Metals has agreed to advance to Tethyan a secured convertible loan in the amount of up to 1.3 million euro in tranches.
($ = 0.924612 euro)