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Tethyan Resources to proceed with loan and convertible debenture issue

The private placement of shares posited back in November will not now take place
Roll of £20 notes
The company has cancelled a total of 800,000 outstanding stock options granted in August 2016

Director Michael Andrews has agreed to lend £350,000 (roughly C$600,000) to Tethyan Resources PLC (LON:TETH,CVE:TETH), interest free.

Southern Arc Minerals Inc (CVE:SA) has also advanced C$400,000 to Tethyan as part of a convertible debenture financing.

The debenture will bear interest annually at a rate of four percentage points above the London Interbank Offer Rate (LIBOR), and will have a maturity date of six months.

The debentures will be convertible into Tethyan shares on the same terms as the company's next equity financing, provided that Southern Arc's stake does not rise to 30% or above, as this would trigger a mandatory offer for the company.

The loan and convertible debenture are subject to the approval of the TSX Venture Exchange.

Having made alternative financing arrangements, the company will not be proceeding with its previously announced private placement.

READ Tethyan Resources poised to raise up to $3.15mln via placing

Shares in the minerals exploration company were up 3.8% in Canada following the announcement.

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