(via TheNewswire)
Western
Tethyan Resources (“WTR”) completes detailed due diligence review at Slivova Gold Deposit;
WTR elects to continue their work at Slivova and enter into Stage 1 of the earn-in joint venture;
The companies expect to complete a definitive earn-in agreement in the coming weeks, outlining the path to potential production at Slivova;
WTR initiates a Preliminary Economic Assessment (“PEA”)/ Scoping Study for the
Slivova Project .
Mentor Demi, Managing Director of Western Tethyan Resources, commented,“We are very pleased to have successfully completed the Due Diligence on
Kerim Şener, Managing Director of Ariana Resources, added, “We are looking forward to further advancing the development of the attractive
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Figures 1 and 2. Maps showing location of Slivova in
During the 6-month due diligence period, WTR developed a small mine concept for the
WTR further added that as a result of their studies, they would initiate a Preliminary Economic Assessment and Scoping Study for the
Terms of the Agreement
Under the terms of the Definitive Agreement, WTR will have the right to acquire, in multiple stages, up to 85% of the Slivova project, by completing a series of exploration and development milestones and making staged payments to AVU.
On Closing
Euro 35,000 cash payment upon signing the Definitive Agreement onMarch 1, 2023
Earn-In Phase
Stage 1:
Euro 30,000 cash payment onSeptember 1, 2023 ;If WTR elects to enter the Definitive Agreement, it will invest
Euro 800,000 , during first two years from the effective date (minimum ofEuro 150,000 must be spent bySeptember 1, 2023 , post DD Phase) for exploration, drilling, baseline environmental and social surveys, landowners, etc., for 51% of the Project.
Stage 2:
After completion of Stage 1, during the third year from the Effective Date, WTR will invest
Euro 1,000,000 for NI 43-101 resource estimation, commencement of full Environmental Impact Statement (“EIS”), etc., for 75% of the Project.
Stage 3:
During fourth and fifth year from the Effective Date, WTR must complete the EIS, Feasibility Study (“FS”), and Mining License application, for 85% of the Project.
Stage 4:
WTR completes success payments to previous JV partner,
Byrnecut International Ltd. , accordingly:Euro 125,000 in cash within 30 days of the first to occur of: 1) Completion of a positive FS (minimum 15% IRR) or; 2) Avrupa or related party making a decision to proceed with development of a mining operation within the license area;Euro 125,000 within 30 days of issuance of a mining license for the Project;Euro 125,000 within 30 days of commencement of mine construction within the license area;100 troy ounces of gold within 30 days of commencement of commercial production (“CCP”), then increasing by 75 troy ounces per year until and including the third anniversary of commercial production when 325 troy ounces will be delivered.
Stage 5:
Avrupa participates in the mine build or dilutes to 1% NSR.
Western Tethyan Minerals (WTR)is a
For additional information, contact
On behalf of the Board,
“Paul W. Kuhn”
This news release was prepared by Company management, who take full responsibility for its content. Paul
Neither
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