The Raska Project Overview

Kizevak and Sastavci are two past-producing zinc, lead and silver open pit mines located within the Raska District. The Kizevak and Sastavci exploration licences cover a total area of 3.28 km2 and are contiguous with Tethyan’s existing exploration rights in the district. In May 2020 Tethyan purchased a 10% ownership stake in EFPP d.o.o., and secured the right to acquire the remaining 90% at any time prior to 15th May 2021 (see terms below). 

The Kizevak and Sastavci mines were discovered in the mid 1970s and operated by the Yugoslav State between 1984 and 2000, when mining ceased due to conflict in the region. The projects benefit from numerous infrastructure advantages including water, power, road and rail access all within 5 kilometres, and a local workforce with a long history of mining. Additionally, the land comprising the wider project area is designated for mining purposes under the Serbian State spatial plan, providing many permitting benefits and efficiencies.

No significant exploration work has been conducted on either licence since mining ceased, and the projects offer significant exploration potential for expansion of existing, in-situ mineralisation along strike and down dip from the open pits at Kizevak and Sastavci.

Tethyan has completed a review of historic data and digitised historic drilling and underground sampling results from which initial drill targets have been identified for both verification of the location and tenor of mineralisation, as well as testing exploration potential down dip and along strike. Tethyan has also worked extensively along strike from the Kizevak and Sastavci pits within adjacent exploration licences since 2018, including soil sampling, detailed mapping and diamond drilling. This work resulted in significant intercepts reported in September 2018 and the identification of undrilled targets at the Kizevak South and Sastavci Gold prospects.

Mineralisation at both targets is vein type, intermediate sulphidation epithermal comprising quartz-carbonate-sulphide vein breccias and stockwork zones, hosted in an andesitic volcanic sequence.

Terms of the Acquisition of Kizevak and Sastavci

The acquisition of Serbian company Ras Metals d.o.o., the holder of the Kizevak and Sastavci exploration licences, will occur in two steps, an initial ‘First Closing’ whereby Tethyan has acquired 10% of the shares of Ras Metals and management control of the company, and a 12 month period in which to decide, in its sole discretion, whether to proceed to a ‘Second Closing’ when Tethyan has the right to acquire the remaining 90% of the shares of Ras Metals. A summary of the terms of the Transaction is as follows:

First Closing:

  • In consideration for 10% of the shares of Ras Metals Tethyan paid to the Sellers a total of EUR 625,000 cash on the First Closing.

Second Closing:

  • At any time within 12 months of First Closing, Tethyan may elect to acquire the remaining 90% of shares of Ras Metals on the Second Closing by:
    • Paying EUR 1,375,000;
    • Granting to the Sellers a 2% Net Smelter Return over the Licences;
    • Issuing a total of 664,000 ordinary shares of Adriatic, to be issued in four equal tranches of 166,000 shares, with the first tranche issued on the Second Closing and each additional tranche issued each six months thereafter;
    • Paying a deferred cash payment of EUR 500,000 on the two-year anniversary of First Closing.


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