Join our daily newsletter At The Bell to receive exclusive market insights
- Adriatic Metals (ADT) is set to acquire Canadian junior explorers Tethyan Resources and its major Brownfield development projects
- ADT will add the past-producing Kizevak and Sastavic polymetallic mines to bolster its portfolio, in the hope it pushes it towards being the leading Balkan base and precious metals developer
- The company will also provide a $2.15 million loan to Tethyan so it can wrap up a deal to acquire Serbian explorer EFPP, who hold parts of the deposits and to commence confirmation drilling at the site
- Adriatic Metals hopes to have the deal finalised by the end of August
- Adriatic Metals were only slightly in the green at market close, up 0.77 per cent with shares selling for $1.30 each
Precious and base metals explorer and developer, Adriatic Metals (ADT), is in the process of finalising a deal to acquire Canadian junior explorers Tethyan Resources and its major Brownfield development projects in Serbia.
ADT will add Tethyan’s past-producing Kizevak and Sastavic polymetallic mines, to bolster its portfolio and make it the leading Balkan base and precious metals developer.
The company hopes to replicate what it’s achieved with its Vares Project in neighbouring Bosnia and Herzegovina. Vares comprises of a historic open cut mine at Veovaca and Brownfield exploration at Rupice, an advanced proximal deposit which the company claims exhibits high grades of base and precious metals.
Adriatic Metals will also provide Tethyan with a $2.15 million loan so they can finalise a deal to acquire Serbian explorer EFPP, which hold parts of the deposits, and allow them to commence confirmation drilling at the site.
ADT hopes the deal to acquire Tethyan will be completed by the end of August.
Transaction rationale
Adriatic metals hopes the deal will turn the enlarged company into the leading Balkan polymetallic explorer and developer with four key projects; Rupice, Veovaca, Kizevak and Sastavci covering a total land package in excess of 301 square kilometres across Bosnia and Serbia.
The transaction allows Tethyan shareholders to retain upside to the Kizevak and Sastavci Projects whilst increasing the pace of development, as Adriatic brings its balance sheet of $23.8M and its experienced project development team to rapidly progress the projects.
Why Kizevak & Sastavic
Kizevak is a past-producing mine which reportedly hosts considerable historic Lead, Zinc and Silver resources. In 2018 and 2019, Tethyan drilled 14 holes 1000 metres south of the Kizevak open pit.
The company claims the drill holes returned high grades of Lead, Zinc and Silver mineralisation including; 12 meters at 22.03% Zinc, 10.49% Lead and 167 grams per tonne (g/t) of Silver.
Sastavic was also mined historically by open pit, but on a smaller scale than at Kizevak, and the company says its now a priority drilling target. The Sastavic historic open pit is located 3.5km north-northwest of the Kizevak open pit.
The company said there are huge sulphide veins up to five metres wide visible within the pit walls. Tehtyan collected 65 rock chip samples across the area, which returned some 30 per cent plus Zinc samples, 7.1 per cent Lead and 94.3g/t Silver in the old Sastavic open pit.
Adriatic Metals were only slightly in the green at market close, up 0.77 per cent with shares selling for $1.30 each.
