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VANCOUVER, Nov. 14, 2017 /CNW/ - Southern Arc Minerals Inc. (TSX-V: SA) ("Southern Arc" or the "Company") is pleased to announce that it intends to make an additional investment of up to $950,000 in Tethyan Resources plc (TSXV: TETH) ("Tethyan"). Tethyan is listed on the TSX Venture Exchange and is exploring for copper and gold within the Western Tethyan Orogenic Belt in the European Balkan Region.
Southern Arc intends to subscribe for up to 3.167 million additional new ordinary shares in Tethyan at a price of C$0.30 per ordinary share on a post consolidated (1:6) basis (the "Placement"). The closing of the Placement is subject to a number of conditions including: Tethyan completing the share consolidation on the basis of 1 new ordinary share for each 6 existing ordinary shares; and TSX Venture Exchange approval of the private placement for Tethyan.
Southern Arc presently owns 29.9% of the issued and outstanding ordinary shares of Tethyan on an undiluted basis and will not exceed that percentage on closing of the 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 ("MI 61-101") 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.
Tethyan Resources plc is a gold and base metal mineral exploration company incorporated in England & 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 and base metals projects with known mineralisation and compelling drill targets. Tethyan emphasises responsible engagement with local communities and stakeholders, and is committed to proactively implementing Good International Industry Practice (GIIP) and sustainable health, safety and environmental management
About Southern Arc
Southern Arc is a Canadian company focused on enhancing shareholder value through strategic investments in mineral resource companies with a focus on gold and copper-gold. Southern Arc's management team identifies highly prospective assets in politically safe jurisdictions and seeks to unlock their value by providing strategic investments, proven technical skills, global knowledge, and increased access to industry relationships. More information is available at www.southernarcminerals.com or by email at [email protected].
On behalf of the Board of Southern Arc Minerals Inc.
Chairman & CEO
TSX Venture Exchange Disclaimer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
This news release contains forward-looking statements relating to: completion of the proposed private placement, completion of the proposed share consolidation and receipt of regulatory approval for the private placement. These statements are subject to certain risks and uncertainties, such as, the regulatory process and actions, new legislation and uncertainties resulting from potential delays or changes in plans. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors.
SOURCE Southern Arc Minerals Inc.
For further information: Southern Arc Contact: John Proust, Chairman & CEO, Phone: 778-725-1490, Email: [email protected]