11 May Adriatic Metals swoops on fellow Balkans precious metals miner
ASX-listed Adriatic Metals has announced a deal to acquire fellow junior Tethyan Resource Corp, growing its base and precious metals portfolio in the Balkans region of Eastern Europe.
The deal will add two past producing silver-zinc-lead mines in Serbia to Adriatic’s 301 km² portfolio, which is predominantly comprised of the Vares polymetallic project in Bosnia and Herzegovina.
Tethyan shareholders will each receive 0.166 Adriatic shares per Tethyan share held, resulting in shareholders of the former owning about 6.9% of the enlarged Adriatic. The deal implies an equity value of A$16.12 million for Tethyan.
In conjunction with the transaction, Adriatic has agreed to advance Toronto-listed Tethyan a secured convertible loan of up to A$2.15 million in tranches.
Adriatic managing director and CEO Paul Cronin said the acquisition presents a ‘unique’ opportunity for the company to add assets that have the potential to match the quality of the Vares project.
“These are past producing mines, and the historical data we have reviewed provides ample confidence that we are adding significant value to our portfolio with minimal outlay and dilution to our existing shareholders,” he said.
Adriatic plans to rapidly advance the Kizevak and Sastavci polymetallic mines in the Raska district of Southwestern Serbia towards a maiden JORC compliant resource by the end of Q4 2020.