20 Mar Tethyan Resources Announces Definitive Agreement to Acquire Taor
TETHYAN RESOURCES ANNOUNCES DEFINITIVE AGREEMENT TO ACQUIRE TAOR
March 20, 2018 – Jersey, UK – Tethyan Resources plc (TSXV: TETH) (“Tethyan” or the “Company”) is pleased to announce that it has entered into a definitive share purchase agreement (the “Agreement”) with Balkan Minerals Limited (“Balkan”) and Dr. Radomir Vukcevic (“Dr. Vukcevic”) to acquire all of the issued and outstanding shares of Balkan’s wholly-owned Serbian subsidiary Taor D.O.O. (the “Transaction”) on the terms previously disclosed in the Company’s news release dated February 14, 2018.
Taor holds two exploration licenses totalling approximately 100 square kilometres (the “Taor Licenses”) situated adjacent to Tethyan’s optioned Suva Ruda license. Upon completion of the Transaction, the Company will own or hold an option over exploration licenses totalling approximately 350 square kilometres in the historic Raška lead and zinc mining district in Southern Serbia (Figures 1 and 2). The closing of the Transaction remains subject to various conditions, including the completion by Tethyan of satisfactory due diligence and the approval of the Transaction by Tethyan’s shareholders and the TSX Venture Exchange.
Of the two Taor Licenses, the Kremice license includes a 500 metre wide area immediately surrounding two formerly producing lead and zinc mines named Kizevak and Sastavci. Historical exploration carried-out by the Yugoslav Geological Survey and past operators of the mines show that lead-zinc-silver mineralisation still remains at the site of these mines and extends onto Taor’s Kremice license. The Kizevak mine was operated by the Serbian state between 1984 and 2000, producing 2 Mt at 1.71 % lead and 3.25 % zinc. Ore was trucked and toll-processed at the now abandoned Rudnica flotation plant, located 12 km by road from the open pit, producing a lead concentrate and a zinc concentrate. Concentrates were transported by rail to smelters located in what is now Kosovo. Since 2000, the project has been explored by Serbian company Farmacom who drilled 11,739.3 m of diamond core and developed 12.2 km of underground adits and drives for exploration.
Mineralisation at Kizevak comprises moderately northeast dipping, southeast striking, stratabound replacement lenses of disseminated and semi-massive sulphide mineralisation over a strike length of 1.3 kilometres, between 1 and 30 metres wide, and up to 200 metres down dip. Mineralisation is open down dip and along strike to the southeast, and based on the results of previous exploration extends at least 250 metres onto Taor’s Kremice license and appears to remain open.
The Kaznovici license covers a 50 square kilometre area to the south and west of the Suva Ruda license and is immediately adjacent to the Rudnica copper-gold porphyry where Tethyan drilled in 2016/2017 and returned significant intervals of copper and gold porphyry mineralisation. Tethyan’s geologists have identified that gold mineralisation related to the Rudnica copper-gold porphyry system extends onto the Kaznovici license area, as evidenced by a zone of silicified and gossanous outcrop seen over a surficial area of 300 by 100 metres with individual rock-chip samples returning up to 8 g/t gold. Exploration conducted by Reservoir Capital Corporation at Kaznovici in 2007 reportedly identified an additional zone of gold-bearing silica-alunite alteration, a characteristic often associated with high-sulphidation gold deposits, over an area at least 1,000 by 250 metres which was named the Bukovic prospect.
Also within the Kaznovici license area is the Lipovica lead-zinc-gold deposit, initially explored by the British in the late 1930’s, and further explored by the Yugoslav Geological Survey between 1961-1991 when exploration ceased due to the commencement of war in Yugoslavia.
Pending closing of the Transaction, Tethyan will commence an initial drill programme within the Kremice license in order to test for extensions to the Kizevak lead-zinc-silver mine and verify historical drill and adit sampling results. Tethyan is currently underway with a detailed review of the historical data available for the wider district in order to prioritise the various other targets and inform the exploration work programme for 2018.
Fabian Baker, President and CEO of Tethyan commented: “The acquisition of Taor will add significantly to Tethyan’s potential to make a major mineral discovery. Through the consolidation of such a large land position in the Trepca Mining District, which was the largest mining complex in all of Yugoslavia during the 1970s, Tethyan now has multiple exploration targets and opportunities for success. We have already begun to demonstrate extensive copper-gold porphyry mineralisation at Rudnica which remains open in all directions. Now, with respect to zinc, Tethyan will hold rights over an entire district which includes three historical resources and multiple exploration targets which we believe to have significant exploration upside. All of this is situated in an area of excellent existing infrastructure and a long history of mining. In addition, we look forward to welcoming Dr Vukcevic to the team, his experience in minerals processing and metallurgy will complement our exploration team well and allow us to rapidly progress these assets with excellent technical oversight.”
Figure 1: District scale map of the Raška lead and zinc mining district in Southern Serbia where Tethyan is consolidating exploration license holdings. Also shown are the multiple known exploration targets and historical mines.
Figure 2: Cross-section through the Raška lead and zinc mining district in Southern Serbia (refer to Figure 1 for the location of the cross-section line), showing multiple areas of copper-gold and lead-zinc mineralisation.
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 in 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.
The technical information in this news release has been reviewed by Tethyan’s Senior Vice-President Exploration and Development, Peter Mullens, FAusIMM, who is a Qualified Person as defined by National Instrument 43-101.
Tethyan Resources Contact
|Tethyan Resources plc||+44 1534 881 885|
|Fabian Baker (CEO)||email@example.com|
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. Forward-looking information includes, but is not limited to, statements with respect to the Transaction and the completion thereof; the Company’s ownership interest in the historic Raška lead and zinc mining district in Southern Serbia upon completion of the Transaction; the Company commencing an initial drill programme within the Kremice license; the acquisition of Taor adding significantly to the Company’s potential to make a major mineral discovery; the significant exploration upside of multiple exploration targets; Tethyan holding rights over an entire district; and the addition of Dr Vukcevic to the Company and his anticipated contributions. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “look forward”, “potential”, “we believe”, or variations of such words and phrases or statements that certain actions, events or results “will” occur. Forward-looking statements 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 as well as board and shareholder approvals, capital expenditures and other costs, financing and additional capital requirements, completion of due diligence, general economic, market and business conditions, new legislation, uncertainties resulting from potential delays or changes in plans, political uncertainties, and the state of the securities markets generally. 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.