JERSEY, UK, March 20, 2018 /CNW/
- 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."
About Tethyan
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.
Qualified Person
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.
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.
SOURCE Tethyan Resources PLC