During the period ended December 31, 2016, Southern Arc acquired 29.9% of Tethyan. Tethyan is an AIM quoted junior exploration company with a focus on exploring for copper and gold within the Western Tethyan Orogenic Belt in the European Balkan Region. Currently, Tethyan holds rights with respect to licenses in Serbia and is looking for other copper and gold projects in Eastern Europe. Tethyan entered into an option agreement over the Suva Ruda project in September 2016, currently owned by a Serbian private company Deep Research d.o.o. According to the option agreement, Tethyan holds the option to purchase 100% of the project at any time during an 8 year period for a €6,000,000 cash payment provided that Tethyan achieves certain exploration and payment milestones.
The Company has also negotiated the following additional rights with respect to Tethyan:
- A first right of refusal on any further fundraisings undertaken by Tethyan for a period of two years to enable the Company to increase its holding to, and maintain its interest at 29.9% of Tethyan’s issued share capital; and
- Tethyan’s agreement to use its commercially reasonable efforts to seek a listing on the TSX Venture Exchange
Tethyan has completed its 4 diamond drill hole program (total 2,318 metres) at the Rudnitza copper-gold porphyry project located within the Suva Ruda exploration permit in Serbia. Tethyan has received assay results for all four drill holes which demonstrated good grade distribution and high-grade mineralization.
All drill results have been press released and are available on Tethyan’s website at www.tethyan-resources.com