Tethyan Resources Plc said Feb. 14 that it signed a binding letter of intent to acquire Balkan Minerals Ltd.'s Taor doo unit, which owns two exploration licenses adjacent to Tethyan's optioned Suva Ruda license within Serbia's historical Raška lead and zinc mining district.
The LOI was signed with Balkan Minerals and its sole shareholder Radomir Vukcevic, giving Tethyan 40 days to exclusively negotiate the terms of the acquisition and sign a definitive share purchase agreement.
Under the proposed deal, Tethyan will issue 7 million shares and pay €125,000 in cash to Vukcevic upon closing of the transaction. The miner will pay Vukcevic a further €125,000 in cash within three months of closing and issue an additional 5 million shares on the first anniversary of closing.
Following the transaction's closing, which remains subject to certain conditions, Tethyan plans to add Vukcevic to its board as a new director and engage him as a consultant to oversee the technical development of the company's exploration projects.