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- Mining company Adriatic Metals (ADT) has entered into an agreement regarding its acquisition of mineral exploration company, Tethyan Resources
- Under the agreement, Adriatic will acquire 100 per cent of outstanding common shares in Tethyan, through a plan of arrangement
- Adriatic will issue 0.166 of an ordinary share in Adriatic for each outstanding common share of Tethyan
- The two companies expect the arrangement to be completed in or around August 2020
- Adriatic Metals (ADT) is up 0.4 per cent on the market today, trading for $1.27 per share
Mining company Adriatic Metals (ADT) has entered into an agreement regarding its acquisition of mineral exploration company, Tethyan Resources.
Tethyan Resources, which is listed on Canada’s TSX Venture Exchange, operates in Eastern Europe. The company’s focus is on precious and base metals mineral exploration along the Tethyan Metallogenic Belt, mainly in Serbia.
Tethyan shares many similarities with Adriatic Metals, which owns the polymetallic Vares project in Bosnia & Herzegovina.
Under the new agreement, Adriatic Metals will acquire 100 per cent of outstanding common shares in Tethyan Resources. This will occur by way of a plan of arrangement, under the Business Corporations Act of British Columbia.
Adriatic Metals’ consideration for the acquisition of Tethyan Resources will purely be provided through shares. In exchange for each outstanding common share in Tethyan, Adriatic will issue 0.166 of an ordinary share in Adriatic Metals.
The final number of Adriatic shares issued will depend on the number of outstanding Tethyan shares at the effective time of the arrangement.
This new definitive arrangement agreement replaces a prior binding letter agreement which the companies previously entered and announced.
However, this arrangement is dependent upon the companies satisfying the customary conditions. These will include receiving the requisite approval from shareholders, the courts, and Australian and Canadian stock exchanges. In addition, the ordinary shares in Adriatic Metals will have to be issued on the London Stock Exchange.
Assuming that all conditions are met, the companies expect that the arrangement and acquisition will be completed in or around August 2020. After the companies complete the arrangement, Tethyan Resources will apply to delist its common shares from the TSX Venture Exchange (TSXV).
Adriatic Metals (ADT) is up 0.4 per cent on the market today, trading for $1.27 per share at 2:22 pm AEST.
