• Tethyan Resources (TETH) has received final approval from the Supreme Court of British Columbia for its proposed acquisition by Adriatic Metals
  • Under the terms of the agreement, Adriatic will acquire all of Tethyan’s common shares on the basis of 0.166 Adriatic shares for every share in Tethyan
  • This represents an implied price of C$0.184 per Tethyan share
  • The transaction was approved by Tehyan’s shareholders on August 18, 2020
  • Tethyan Resources (TETH) is currently steady at $0.40 per share, as of 10:59am EDT

Tethyan Resources (TETH) has received final approval from the Supreme Court of British Columbia for its proposed acquisition by Adriatic Metals.

Under the terms of the agreement, which was originally announced on May 11, 2020, ASX-listed Adriatic will acquire 100 per cent of Tethyan’s issued and outstanding capital by way of a plan of arrangement.

Pursuant to the plan, each shareholder of Tethyan will receive 0.166 Adriatic shares for each Tethyan share held. This is expected to result in Tethyan shareholders owning approximately 6.9 per cent of Adriatic upon completion of the transaction.

The plan represents an implied price of C$0.184 per Tethyan share based on the 20-day volume weighted average price of Adriatic at 8 May, 2020, and values Tethyan at roughly C$14.7 million – or A$15.56 million.

Adriatic says its acquisition of Tethyan will bolster the company’s existing portfolio of assets in the Balkans.

Fabian Baker, President and CEO of Tethyan Resources, said in the May 11 news release that he is excited that the company’s assets will soon become part of the Adriatic story.

“Adriatic Metals has built an excellent reputation in the Balkans based on their development capability and positive engagement with local stakeholders.

“We are confident that the combined assets and team will go forward to bring high quality assets to production in a timely and sustainable manner, ensuring lasting benefits for both our shareholders and the communities in which we operate,” he added.

Tethyan announced on August 18 that its shareholders had voted in favour of the transaction. All that remains now is the receipt of approval from the TSX Venture Exchange and the London Stock Exchange, and the completion of Tethyan’s acquisition of Serbian company EFPP d.o.o.

The merger is expected to close in September this year, after which Tethyan will apply to have its shares de-listed from the TSX Venture Exchange.

Tethyan Resources (TETH) is currently steady at $0.40 per share, as of 10:59am EDT.

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