Adriatic Metals will acquire Tethyan Resources under the Business Corporations Act for C$14.7mn (US$10.6mn).
This acquisition will help Adriatic to become a leading metal developer in the Balkan region, the UK-Australian metal company announced on Tuesday.
This merger includes acquiring all shares of the Toronto-headquartered miner along with two ongoing projects aimed at exploring copper, zinc, lead, silver, and gold at open pit mines in Serbia.
Tethyan shareholders, the companies indicated, will benefit from Adriatic’s exploration projects that include the latter’s Vares Project development along with regional exploration in Bosnia & Herzegovina.
Adriatic will complete a pre-feasibility study in Q3 2020 and will announce JORC-compliant mineral resources at Kizevak and Sastavci polymetallic mines in the Raska region by 2020 end, the company noted in a press release.
Adriatic and Tethyan have also entered into a convertible loan agreement, where the former will advance a secured convertible loan of up to €1.3mn ($1.41mn) in three tranches to Tethyan. Adriatic has advanced the first €1mn under the Convertible Loan Agreement.
(€1 = US$1.08; US$1 = C$1.40)