UK-based gold and copper miner Tethyan Resources said it signed an agreement to acquire the entire capital of Serbian company Taor from Balkan Minerals Limited.
Upon completion of the deal, Tethyan will own or hold an option over exploration licenses totalling approximately 350 square kilometres in the historic Raska lead and zinc mining district in Southern Serbia, the UK-based company said in a statement on Tuesday.
Taor holds two exploration licences, namely Kremnice and Kaznovici, totalling approximately 100 square kilometres, situated adjacent to Tethyan’s optioned Suva Ruda license, Tethyan said.
“We have already begun to demonstrate extensive copper-gold porphyry mineralisation at Rudnica which remains open in all directions. Now, with respect to zinc, Tethyan will hold rights over an entire district which includes three historical resources and multiple exploration targets which we believe to have significant exploration upside,” the president and CEO of Tethyan, Fabian Baker, said in the statement.
The closing of the transaction remains subject to various conditions, including the completion by Tethyan of satisfactory due diligence and the approval of the deal by its shareholders and the TSX Venture Exchange.
Pending closing of the deal, Tethyan will commence an initial drill programme within the Kremice license in order to test for extensions to the Kizevak lead-zinc-silver mine and verify historical drill and audit sampling results.