Southern Arc Announces Call Option Agreement for the Sale of 5m Tethyan Shares
Vancouver, British Columbia--(Newsfile Corp. - January 31, 2019) - Southern Arc Minerals Inc. (TSXV: SA) ("Southern Arc" or the "Company") announces that, in connection with the recently completed C$3.3 million financing completed by Tethyan Resources plc ("Tethyan"), Southern Arc has granted an exclusive call option to purchase up to 5,000,000 of Southern Arc's ordinary shares in Tethyan. The call option was granted to Augusta Investments Inc. ("Augusta"), a private company beneficially owned by Richard Warke. The call option is valid for a period of 18 months and is exercisable at a price of $0.25 per share for a total purchase price of up to $1,250,000. In addition to the call option and at the request of Augusta, Southern Arc also deposited all of its 10,028,119 ordinary shares of Tethyan (which includes the 5,000,000 shares subject to the call option described above) into escrow with Computershare Trust Company of Canada for a period of 18 months. If the call option is exercised in full or in part, the optioned shares will be released to Augusta against payment to Southern Arc for such shares.
As a result of Augusta's participation in Tethyan's recently completed private placement, Augusta now owns approximately 16% of the issued and outstanding ordinary shares of Tethyan and has become the largest shareholder of Tethyan on an undiluted basis. In connection with this recent investment and in order to accommodate the appointment of Augusta nominees to the board and management of Tethyan, John Proust and John Carlile, have resigned from the board of directors of Tethyan, and Eileen Au has resigned as the Corporate Secretary of Tethyan. Dr. Michael Andrews, a director and officer of Southern Arc, will remain on the board of directors of Tethyan.
Chairman and CEO, John Proust stated, "The significant participation of the Augusta Group in the Tethyan financing is a validation of Southern Arc's business model of investing in early stage resource companies in politically safe jurisdictions and unlocking value by providing strategic capital, technical expertise and proven management skills. We look forward to the progress of Tethyan under the leadership of Richard Warke. "
On behalf of the Board of Southern Arc Minerals Inc.
Chairman & CEO
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