Tethyan arranges $3.15-million private placement
Tethyan Resources PLC has arranged a $3.15-million private placement with 10.5 million postconsolidated shares at 30 cents per share. The company will use the proceeds for a planned drilling program at its Rudnitza copper-gold prospect in early 2018.
TETHYAN RESOURCES PLC has arranged a private placement of up to $3.15-million compris ing u p to 10.5 million ordinary shares at 30 cents per ordinary share on a postconsolidated (1:6) basis. Southern Arc Minerals Inc. intends to invest up to $950,000 and acquire up to 3,167,000 ordinary shares under the private placement.
The closing of the private placement is subject to the completion of the previously announced share consolidation (on the basis of one new ordinary share for each existing six ordinary shares) and the approval of the TSX Venture Exchange. The company may pay a 6-per-cent finder’s fee in cash and 6 per cent in warrants in connection with the financing. Each warrant will be exercisable for two years from the closing date at a price of 30 cents per postconsolidated ordinary share. The ordinary shares and the warrants issued to finders (and shares underlying the finder warrants) pursuant to the private placement will be subject to a four-month hold period from the date of closing in accordance with applicable securities legislation.
The net proceeds from the private placement will be used to finance Tethyan’s planned drilling program at the Rudnitza copper-gold porphyry prospect in early 2018 as well as to advance other earlier-stage prospects toward the identification of new drill targets and for general working capital.
Southern Arc presently owns 29.9 per cent of the issued and outstanding ordinary shares of Tethyan on an undiluted basis and will not exceed that percentage on closing of the private placement. The proposed private placement by Southern Arc will be a related party transaction within the meaning of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions, by virtue of Southern Arc being a control person of Tethyan. The private placement is exempt from the formal valuation requirements of MI 61-101 pursuant to Section 5.5(b) thereof and is exempt from the minority shareholder approval requirements by virtue of Section 5.7(a) thereof.
About Tethyan Resources PLC
Tethyan Resources is a gold and base metal mineral exploration company incorporated in England and Wales. Tethyan is focused on the Tethyan metallogenic belt in eastern Europe, mainly Serbia, where it is acquiring and exploring a portfolio of quality precious metal and base metal projects with known mineralization and compelling drill targets.
We seek Safe Harbor.
Metals)(TETH) Shares: 168,182,052 (Mines &