- Mineral exploration company Tethyan Resource (TETH) has successfully been absorbed by ASX-listed miner Adriatic Metals
- Adriatic Metals has acquired all common shares in the company, by way of a court-approved plan of arrangement
- Under the arrangement, Tethyan shareholders will receive 0.166 of one ordinary share in Adriatic for each common share in Tethyan
- The company’s common shares are likely to be delisted from the TSX Venture Exchange after close of trading today
- Tethyan Resource (TETH) is down 1.45 per cent and is currently trading at $0.34 per share
Mineral exploration company Tethyan Resource (TETH) has successfully been absorbed by ASX-listed miner Adriatic Metals.
The two companies first announced plans for the cross-exchange buy-out in May of this year. At the time, Adriatic Metals justified the proposed acquisition as an opportunity to bolster its Balkan portfolio.
In conjunction with the buy-out, Tethyan and Adriatic entered into a loan agreement, under which Tethyan received approximately C$1.97 million. These funds allowed Tethyan to close the acquisition of two previously producing USSR mines in Serbia, the Kizevak and Sastavci deposits.
The loan also helped Tethyan to finalise a deal to acquire Serbian explorer, EFPP, which held parts of those deposits. These assets will now serve to expand Adriatic Metals’ already considerable portfolio in Bosnia & Herzegovina.
While it was expected that the acquisition transaction would be completed sometime in August, it ended up taking longer than anticipated.
The arrangement was subject to the satisfaction of a number of conditions, including approval from shareholders, the courts, and the Canadian and Australian stock exchanges. In addition, the ordinary shares in Adriatic Metals which would be used in the transaction had to be issued on the London Stock Exchange.
Tethyan Resource didn’t receive approval from the company’s shareholders until August 18, 2020. This was shortly followed after by final approval from the Supreme Court of British Columbia, on August 21, 2020.
Adriatic Metals has now acquired all common shares in the company, by way of a court-approved plan of arrangement. Under the arrangement, Tethyan shareholders will receive 0.166 of one ordinary share in Adriatic for each common share in Tethyan.
With the acquisition arrangement now completed, Tethyan Resource has applied to delist its common shares from the TSX Venture Exchange (TSXV). The shares are likely to be delisted from the exchange after close of trading today, at the earliest.
Tethyan Resource (TETH) is down 1.45 per cent and is trading at $0.34 per share, as of 11:29am EDT.