Terra Balcanica Closes Second Tranche of Financing and Starts Phase Ii Drilling at Brezani Porphyry Target in Bosnia
NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATES
TERRA BALCANICA CLOSES SECOND TRANCHE OF FINANCING AND STARTS
PHASE II DRILLING AT BREZANI PORPHYRY TARGET IN BOSNIA
Vancouver, British Columbia – June 22nd, 2023 – Terra Balcanica Resources Corp. (“Terra” or
the “Company”) (CSE:TERA; FRA:UB1) is pleased to announce closing of the 2 nd tranche of
the non- brokered private placement financing (the “ Offering”) of units (the ” Units”) and
recommences drilling of the 1.2 km wide Brezani porphyry target at its flagship Viogor- Zanik
project in Bosnia and Herzegovina.
Second Tranche Private Placement Financing Closed
The Company issued an aggregate of 3,620,56 4 Units at a price of $0.085 per Unit for gross
proceeds of $307,748 pursuant to the Offering announced on April 4th, 2023. Each Unit consists
of one common share in the capital of the Company (each, a “Common Share”) and one Common
Share purchase warrant ( each whole warrant, a “ Warrant”). Each Warrant entitles the holder to
purchase one Common Share at an exercise price of $0.13 until June 22nd, 2026.
The Company intends to use the net proceeds of the Offering for working capital and to fund the
Phase II drilling across its portfolio of properties . Finders’ fees in the amount of $ 10,465 were
paid.
Aleksandar Mišković, President, CEO and a director (the “Insider”), purchased 147,059 Units as
part of the Offering. The issuance of the Units to the Insider s constitutes a "related party
transaction" as this term is defined in Multilateral Instrument 61 -101 - Protection of Minority
Securityholders in Special Transactions (“MI 61-101”). The Company is relying on the exemption
from valuation requirement and minority approval pursuant to subsection 5.5(a) and 5.7(a) of MI
61-101, respectively, as the securities do not represent more than 25% of the Company’s market
capitalization, as determined in accordance with MI 61-101. The participation by an Insider in the
Offering was approved by directors of the Company who are independent in connection with such
transactions.
Pursuant to applicable Canadian securities laws, all securities issued and issuable in connection
with the closing of the Private Placement will be subject to a four (4) month hold period
ending October 22nd, 2023.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the
securities in the United States. The securities have not been and will not be registered under the
United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities
laws, and may not be offered or sold within the United States, or to or for the account or benefit
of any U.S. person or any person in the United States, unless registered under the U.S. Securities
Act and applicable state securities laws or an exemption from such registration is available.
“United States” and “U.S. Person” are as defined in Regulation S under the U.S. Securities Act.
Shares for Debt
The Company has agreed to settle outstanding debt in the amount of CDN$50,000 (the “Debt”)
owing to a creditor (the “Creditor”) by issuing an aggregate of 588,236 common shares in the
capital of the Company (the “ Common Shares”) at a price of $0.085 per Common Share (the
“Shares for Debt Transaction”). The Creditor is a private company 100% owned by Aleksandar
Ilic, a director and shareholder of the Company. The Board of Directors has determined it is in
the best interests of the Company to settle the outstanding Debt through the issuance of the
Common Shares in order to preserve the Company’s cash for ongoing operations.
The issuance of the Common Shares to the Creditor constitutes a "related party transaction" as this
term is defined in Multilateral Instrument 61 -101 - Protection of Minority Securityholders in
Special Transactions (“MI 61-101”). The Company is relying on the exemption from valuation
requirement and minority approval pursuant to subsection 5.5(a) and 5.7(a) of MI 61- 101,
respectively, as the securities do not represent more than 25% of the Company’s market
capitalization, as determined in accordance with MI 61-101.
Closing of the Shares for Debt Transaction is subject to customary closing conditions and intended
to close as soon as practicable. The Common Shares to be issued pursuant to the Shares for Debt
Transaction will be subject to a hold period of four (4) months and one (1) day from the date of
issuance.
Shares for Services
The Company entered into an arm's length shares for services agreement dated April 18 th, 2023
(the "Agreement") with a company providing drilling services at Terra’s Viogor-Zanik property
(the “Service Provider”). For completion of services rendered under the Agreement between
April 18th, 2023 and June 19th, 2023 the Company intends to issue (i) 984,378 units of the Company
(“Consideration Units”) to the Service Provider, with each Consideration Unit consisting of one
common share in the capital of the Company (a “Share”) and one common share purchase warrant
(a “Warrant”). Each Warrant will entitle the holder thereof to acquire one additional Share fo r a
period of 36 months from the date of issuance at an exercise of $0.13. Each Consideration Unit
will be issued at a deemed price of $0.085.
Closing of the distribution of Consideration Units pursuant to the Agreement is subject to
customary closing conditions and intends to close as soon as practicable. The Common Shares to
be issued pursuant to the Shares for Debt Transaction will be subject to a hold period of four (4)
months and one (1) day from the date of issuance.
Phase II Drilling Starts at Brezani Target
The Company is recommencing diamond core drilling of the Brezani porphyry system to test a >
600 m wide conductivity anomaly at the centre of a 1.2 km wide anomalously magnetic volume
of rock overprinted by potassic alteration under a gold -bearing skarn discovered in 2022 (Figure
1). Drilling within this electrically resistive unit returned 88.0 m of 0.61 g/t AuEq from surface
(see company news release dated 24th of January 2023).
Concurrently with the Phase 2 Cumavici drilling program at Viogor -Zanik Terra’s geology team
has expanded the strike length of calc-silicate hornfels at Brezani to over 800 m NW-SE and 275
m NE-SW thus expanding the volume of gold-bearing rock to drill test. Sulphide content and grain
size increases to the south of the trend, indicating a possible proximity indicator to intrusive
contact. The package of calc silicates is interpreted as a mineralized shoulder to the porphyry
intrusion.
Figure 1. Conductivity profile of the Brezani target with >95th percentile magnetic anomaly. BREDD002
tested the resistive volume above an abrupt change into coincident high magnetic and elevated electrical
conductivity response below 300 m depth which culminates at >60 mS/m at 450 m of depth. Dashed line
represents distance from the end of BREDD002 to the top of conductor. (Click here to view image)
Moving 700 m NE from the centre of the calc -silicates, pervasive argillic alteration of a
granodioritic unit crops out over 600 m strike length representing the shallowest part of the
porphyry system. Within this argillic a lteration newly recognized massive specular hematite
veining is present, indicative of oxidized hydrothermal fluids, adjacent to gold -bearing
hydrothermal breccias. The alteration consists of a silicified groundmass and clay or vugs present
after plagioclase feldspar destruction. Secondary, euhedral quartz and arsenopyrite-pyrite-galena-
sphalerite can be seen infilling these vugs, offering yet another style of mineralization at the
Brezani target.
Qualified Person
Dr. Aleksandar Mišković, P.Geo, is the Com pany’s designated Qualified Person for this news
release within the meaning of National Instrument 43 -101 Standards of Disclosure of Mineral
Projects (“NI 43-101”) and has reviewed and validated that the information contained in this news
release as accurate.
About the Company
Terra Balcanica is a polymetallic exploration company targeting large -scale mineral systems in
the Balkans of southeastern Europe. The Company has 90% interest in the Viogor -Zanik Project
in eastern Bosnia and Herzegovina, 100% of the Kaludra and Ceovishte mineral exploration
licences in southern Serbia. The Company emphasizes responsible engagement with local
communities and stakeholders. It is committed to proactively implementing Good International
Industry Practice (GIIP) and sustainable health, safety, and environmental management.
ON BEHALF OF THE BOARD OF DIRECTORS
Terra Balcanica Resources Corp.
“Aleksandar Mišković”
Aleksandar Mišković
President and CEO
For further information, please contact Alex Mišković at [email protected], or
visit our website at www.terrabresources.com.
Cautionary Statement
This news release contains certain forward -looking information and forward-looking statements
within the meaning of applicable securities legislation (collectively “ forward-looking
statements”). The use of any of the words “will”, “intends” and similar expressions are intended
to identify forward- looking statements. These statements involve known and unknown risks,
uncertainties and other factors that may cause actual results or events to differ materially from
those anticipated in such forward-looking statements. Such forward-looking statements should not
be unduly relied upon. Actual results achieved may vary from the information provided herein as
a result of numerous known and unknown risks and uncertainties and other factors. The Company
believes the expectations reflected in those forward -looking statements are reasonable, but no
assurance can be given that these expectations will prove to be correct. The Company does not
undertake to update these forward-looking statements, except as required by law.