Tethyan Resources PLC Further re: Option Agreement on Suva Ruda (9939X)

TIDMTETH

RNS Number : 9939X

Tethyan Resources PLC

28 February 2017

TETHYAN RESOURCES PLC

FURTHER RE: OPTION AGREEMENT ON SUVA RUDA

Tethyan Resources PLC ("Tethyan" or the "Company") (AIM:TETH) confirms that it has today made the first Milestone Payment of EUR100,000 to Deep Research d.o.o. in order to retain its option to purchase 100% of the Suva Ruda Project (the "Option").

As announced on 27 September 2016, Tethyan holds the Option to acquire 100% of the Suva Ruda permit from local Serbian company Deep Research d.o.o. In order to retain the Option, the Company is required to make certain milestone payments, consisting of EUR100,000 payable on or before 1 March 2017, and thereafter further payments of EUR100,000 due on each anniversary of signing the Option Agreement until the third year, making a total of four payments (the 'Milestone Payments'); the first of which the Company has made today.

Peter Mullens, CEO of Tethyan, commented: "we are very pleased with our initial results from the Suva Ruda Project. We have intersected consistent, good grade mineralisation over large intervals, including 567 meters at 0.28 % copper and 0.45 g/t gold in drill hole RDD-001. This, our first drill programme, highlights that the project has the potential to be a major copper-gold discovery. Currently Tethyan's technical team is planning a significant field program for the 2017 season. This will include a 2,000 meter drill program commencing approximately the third week of April to follow-up on the results of the 2016 drilling, and a major deep penetrating IP geophysical program to explore for extensions to the known mineralisation and additional targets. Tethyan is currently in discussion with several drilling and geophysical contractors regarding our planned work program.

Following the initial 2,000 meter drill program and the IP geophysical program this spring, Tethyan is looking to complete a larger drill program in August to November of 2017. Depending upon funding and results this is expected to be a minimum of 5,000 meters of drilling that will test new targets generated within the overall alteration package, which extends for 1,500 meters in a north to south direction and over 500 meters in width.

In addition, work programmes are being planned for Tethyan's Joint Venture Gokcanica Project area and a review of other exploration target projects within the Balkan region is being carried out. Tethyan plans to build a pipeline of projects for exploration and potential development."

For further information please contact:

 
 Tethyan Resources PLC       [phone] 
 Peter Mullens (CEO)         [e-mail] 
 
 Cairn Financial Advisers 
  LLP                        [phone] 
 James Caithie / Sandy 
  Jamieson 
 

About Tethyan

Tethyan Resources Plc ("Tethyan Resources") is incorporated in England & Wales (company registration number 3781581) and is a gold and copper mineral exploration company. Tethyan Resources listed on AIM (TETH.L) in 2004.

Exploration is conducted in the Tethyan Belt of Eastern Europe, in particular Serbia where we are acquiring a portfolio of quality precious and base metals projects with known mineralisation and compelling drill targets.

Sustainability is paramount to all Tethyan's activities. The long-term success of Tethyan Resources is connected to our ability to operate in a socially and environmentally responsible way. We are committed to proactively implement sustainable health, safety and environmental management, as well as engage with local communities and all stakeholders. Tethyan Resources' business philosophy is to adhere to good international best practice (GIIP) and implement the highest standards of corporate governance.

More information can be found on our website: www.tethyan-resources.com. This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

Disclaimer

This announcement does not comprise a prospectus or other form of offering document relating to Tethyan Resources plc ("the Company"), and does not constitute an offer or invitation to purchase or subscribe for any securities of the Company or any other company and should not be relied on in connection with a decision to purchase or subscribe for any such securities.

The announcement does not constitute a recommendation regarding any decision to sell or purchase securities of the Company or any other company. Your attention is drawn to the risk factors set out below.

This announcement may contain forward-looking statements including, but not limited to, comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, and other related matters. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. The Company's current projects in Serbia are at an early stage and all estimates and projections are based on limited and possibly incomplete data. More work is required before geological and economic aspects can be confidently modelled. Actual results may differ materially from those currently anticipated in this announcement. No representation or prediction is intended as to the results of future work, nor can there be any guarantee that estimates and projections herein will be sustained in future work or that the Project will otherwise prove to be economic.

This information is provided by RNS

The company news service from the London Stock Exchange

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February 28, 2017 02:01 ET (07:01 GMT)