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You are perfectly entitled to terminate this young man's employment. Where a person has a disability and you are made aware of it by the employee your duty is to try to make reasonable adjustments to assist them in doing their job.
You were not aware of his condition at the start but , once aware, you did make such adjustments such as allowing him to have drinks on site.
However, you do not have to put up with behaviour which endangers the contract and possibly the safety of others on site.
You also have a duty to others on site and are not expected to risk your livelihood and that of the others who depend on you for employment.
Pay him off and advise him that if he makes any more threats to anyone you will report all the threats he has made to the police.
If there are any further points please reply I will be happy to respond.
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