Adriatic Metals to acquire Tethyan Resource

• Mineral exploration company, Tethyan Resource (TSXV:TETH) has entered into an agreement regarding its acquisition by Adriatic Metals
• Under the agreement, Adriatic will acquire 100 per cent of outstanding common shares in Tethyan
• Adriatic will issue 0.166 of an ordinary share in Adriatic, for each outstanding common share of Tethyan
• The arrangement should complete around August 2020, at which point Tethyan will apply to delist its shares from the TSXV
• Tethyan Resource (TETH) is up 2.56 per cent and is currently trading at C$0.20 per share

Mineral exploration company, Tethyan Resource (TSXV:TETH) has entered into an agreement regarding its acquisition by Adriatic Metals.

Mining company Adriatic Metals is listed on the Australian Securities Exchange, as well as the London Stock Exchange. The UK-based company operates primarily in Southeast Europe and owns a polymetallic project in Bosnia & Herzegovina.

Adriatic shares many similarities with Tethyan, which also has precious and base metals operations in Eastern Europe.

Under the new agreement, Adriatic Metals will acquire 100 per cent of outstanding common shares in Tethyan Resource. This will occur by way of a plan of arrangement, under the Business Corporations Act of British Columbia.

Adriatic Metals’ consideration for the acquisition of Tethyan Resource will purely be provided through shares. In exchange for each outstanding common share in Tethyan, Adriatic will issue 0.166 of an ordinary share in Adriatic Metals. 

The number of Adriatic shares issued will depend on the number of outstanding Tethyan shares at the effective time of the arrangement.

This new definitive arrangement agreement replaces a prior binding letter agreement, which the companies previously entered and announced. 

However, this arrangement is dependent upon the companies satisfying the customary conditions. These will include receiving the requisite approval from shareholders, the courts, and Australian and Canadian stock exchanges. In addition, the ordinary shares in Adriatic Metals will have to be issued on the London Stock Exchange.

Assuming that all conditions are met, the companies expect the arrangement and acquisition to complete in or around August. After the companies complete the arrangement, Tethyan Resource will apply to delist its common shares from the TSX Venture Exchange.

Tethyan Resource (TETH) is up 2.56 per cent and is trading at C$0.20 per share at 9:36am EDT.