Tethyan Resource Corp - CEO, Fabian Baker
CEO, Fabian Baker
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  • Tethyan Resources (TSXV:TETH) has announced that it will be bought out by the ASX-listed Adriatic Metals
  • The company will exchange shares with Adriatic, at 0.166 Adriatic shares for every Tethyan share
  • That exchange rate represents a premium of 47 per cent on the average weighted share price of Tethyan
  • Adriatic will also loan Tethyan some C$1.97 million to help it acquire two mineral projects in Serbia
  • Tethyan Resources (TETH) is up 10 per cent and trading for $0.17 per share, with a $12 million market cap

Tethyan Resources (TSXV:TETH) has announced Adriatic Metals will acquire 100 per cent of Tethyan Resources’ issued shares.

In exchange, Tethyan shareholders will be offered Adriatic Metals stocks, at an exchange rate of 0.166 Adriatic shares for each Tethyan share. This represents a premium of 47 per cent on Tethyan’s 20 day weighted average share price.

In conjunction with this buy-out, the companies have also entered into a loan agreement. Under the agreement, Adriatic has agreed to advance Tethyan an approximately C$1.97 million loan.

The loan will be advanced in 3 tranches, with the first $1.5 million already in Tethyan’s bank account.

The loan allows Tethyan to close the acquisition of its two formerly producing USSR mines in Serbia, the Kizevak and Sastavci deposits.

Tethyan’s President, Fabian Baker, said the company was excited to be absorbed by Adriatic, and to advance work on the company’s two recently acquired mines.

“Adriatic Metals has built an excellent reputation in the Balkans, based on its development capability and positive engagement with local stakeholders.

“We are confident that the combined assets and team will go forward to bring high quality assets to production in a timely and sustainable manner, ensuring lasting benefits for both our shareholders and the communities in which we operate,” Fabian said.

Adriatic’s CEO, Paul Cronin, conveyed his pleasure at the acquisition of Tethyan and the company’s potential moving forward.

“Tethyan Resources has been successful in consolidating the Raska district in Serbia, and with the recent addition of the Kizevak and Sastavci licences, 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,” he said.

Tethyan Resources (TETH) is up 10 per cent and trading for $0.17 per share at 3:20pm EDT.

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