MGLDF - Medgold Announces Board Changes Cancellation and Award of Stock Options
(TheNewswire)
Vancouver, Canada – TheNewswire- March 2,2021 – Medgold ResourcesCorp. (TSXV:MED ) | ( FRA:1XD) announces that Mr. Simon Ridgway hasresigned as Executive Chairman and as a Director of Medgold in orderto pursue other business interests. Mr. Ridgway is recognized andwarmly thanked for his foundational role in the establishment ofMedgold, and for his strategic leadership of the Company through itsacquisition, financing and advancement of property assets in bothSerbia and Portugal. Medgold wishes him well in his ongoingventures.
Medgold also announces the appointmentof Mr. Andrei Kroupnik as a Director of the Company. Mr. Kroupnik is aMining Engineer with twenty years of operations, business developmentand capital markets expertise, including the position of Head ofMergers and Acquisitions of Polymetal International, with whom he hasgained in-depth knowledge of global high-grade refractory goldconcentrate market. Medgold benefitted greatly from Mr. Kroupnik’sknowledge of concentrate trading systematics during the recentpreparation of its PEA, in which time he assisted in definingappropriate concentrate specification targets that were used in thePEA’s metallurgical study.
Mr. Kroupnik lives in London where he iscurrently a consultant to Hannam and Partners; he previously held theposition of Vice President Investment Banking – Metals and Mining atCanaccord Genuity/Collins Stewart. Mr. Kroupnik holds a Bachelor ofEngineering from the Curtin University of Technology, WesternAustralia, and an MBA from Esslingen University of Applied Sciences,Germany.
Mr. Kroupnik is cordially welcomed tothe Medgold Board, and the Company looks forward to the benefit of hiscontributions towards the advancement of the TlaminoProject.
The Company also announces that it has granted incentive stockoptions to its directors, officers, employees and consultants topurchase up to 7,645,000 common shares of the Company, exercisable at$0.10 per share for up to ten years. In addition, the Company willcancel up to 4,755,000 existing stock options.
On January 26, 2021,Medgold announced the completionof a positive Preliminary Economic Assessment (“ PEA ”) for the Barje gold deposit at its TlaminoProject, Serbia (“ Tlamino ”, the “ Project ”). The highlights of the PEA are as follows:
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- Based on simple open-pit miningmethods and the production of a flotation concentrate via conventionalprocessing techniques, the pre-tax NPV of the Project, at a discountrate of 8%, is US$101M, its IRR 49%, and its operating margin 61%.
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- The up-front capital cost of theProject is US$74M (inclusive of a 15% contingency margin and furtherstudy and engineering costs) with payback achieved in two years.
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- Life of mine C1 cash costs ofUS$464/oz Au, and life of mine all-in sustaining costs of US$522/ozAu.
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- A gold price of US$1500/oz and asilver price of US$16.50/oz was used in the study. At an approximatespot gold price of US$1,800/oz, the post-tax NPV of the Project, at adiscount rate of 8%, is US$139M, and its IRR 69%.
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- An updated Inferred Mineral Resource of approximately 670,000 oz AuEq in7.1 Mt grading 2.9 g/t AuEq at cut-off grade of 0.7 g/t AuEq.
The PEA is preliminary in nature and isbased on Inferred Mineral Resources that are considered toospeculative geologically to have the economic considerations appliedto them that would enable them to be categorized as Mineral Reserves.As such there may be no certainty that the PEA will be realized. Thestudy was undertaken by Addison Mining Services Ltd., Bara ConsultingLtd. and Reach Partners Limited, all of the United Kingdom.
In January 2021, Medgoldannounced that it has entered into a definitive Option Agreement (the“ Agreement ”) whereby it has an exclusive option (the “ Option ”) topurchase the 51% interest in the Tlamino Project held by FortunaSilver Mines Inc. (“ Fortuna ”) for a cash consideration ofUS$3.468 million. The Option is valid for three years and isexercisable (i) at any time at the election of Medgold prior to theexpiry of the term of the Option; or (ii) at the date of completion ofa sale by Medgold of a 100% interest in the Project to a third party;or (iii) at the date of completion of a merger between Medgold and athird party, whichever arises soonest.
In the event thatMedgold completes a sale of the Project or corporate merger during theterm of the Option and receives consideration in excess of US$8.84million (the “ SaleConsideration ”), Medgold will pay to Fortunaan asset sale bonus equal to 10.2% of any amount in excess of the SaleConsideration, less all of Medgold’s costs related to the sale orcorporate merger.
Qualified Person andData Verification
Mr. Thomas Sant, FGS, CGeol, EurGeol,Consultant Exploration Manager for Medgold and Qualified Person asdefined by NI 43-101, has reviewed and approved the scientific andtechnical content of this news release.
Medgold is a TSX-V listed, goldexploration companytargeting early-stage properties in the Balkan region. Run by anexperienced management team with a successful track-record of buildingvalue in resource companies , Medgold isfocused on growth through fast-paced exploration and resourcedefinition in the prospective and under-explored Balkanregion .
Additionalinformation on Medgold can be found on the Company’s website at www.medgoldresources.com and by reviewing theCompany’s page on SEDAR at www.sedar.com .
JeremyCrozier, President and CEO
For Further Information,Contact:
Jeremy Crozier(Vancouver ) , +1 604 801 5432,info@medgoldresources.com
Neither the TSXVenture Exchange nor the Investment Industry Regulatory Organizationof Canada accepts responsibility for the adequacy or accuracy of thisrelease.
Certain statementscontained in this news release constitute forward-looking statementswithin the meaning of Canadian securities legislation. Allstatements included herein, other than statements of historical fact,are forward-looking statements and include, without limitation,statements about the potential acquisition by the Company ofFortuna’s interest in the Tlamino Project, and the mineral resourceestimate and PEA for the Tlamino Project. Often, but not always,these forward looking statements can be identified by the use of wordssuch as “estimate”, “estimates”, “estimated”,“potential”, “open”, “future”, “assumed”,“projected”, “used”, “detailed”, “has been”,“gain”, “upgraded”, “offset”, “limited”,“contained”, “reflecting”, “containing”, “remaining”,“to be”, “periodically”, or statements that events,“could” or “should” occur or be achieved and similarexpressions, including negative variations.
Forward-lookingstatements involve known and unknown risks, uncertainties and otherfactors which may cause the actual results, performance orachievements of the Company to be materially different from anyresults, performance or achievements expressed or implied byforward-looking statements. Such uncertainties and factors include,among others, whetherthe Company will obtain stock exchange approval to the Option, andultimately acquire Fortuna’s interest in the Tlamino Project; theuncertainties inherent in the PEA and the estimation of mineralresources; changes in general economic conditions and financialmarkets; the Company or any joint venture partner not having thefinancial ability to meet its exploration and development goals; risksassociated with the results of exploration and development activities,estimation of mineral resources and the geology, grade and continuityof mineral deposits; unanticipated costs and expenses; and such otherrisks detailed from time to time in the Company’s quarterly andannual filings with securities regulators and available under theCompany’s profile on SEDAR at www.sedar.com. Although the Companyhas attempted to identify important factors that could cause actualactions, events or results to differ materially from those describedin forward-looking statements, there may be other factors that causeactions, events or results to differ from those anticipated, estimatedor intended.
Forward-lookingstatements contained herein are based on the assumptions, beliefs,expectations and opinions of management, including but not limited to: the Company willobtain stock exchange approval to the Option; the accuracy of the PEA andthe mineral resource estimate for the Tlamino Project; that theCompany’s stated goals and planned exploration and developmentactivities will be achieved; that there will be no material adversechange affecting the Company or its properties; and such otherassumptions as set out herein. Forward-looking statements are madeas of the date hereof and the Company disclaims any obligation toupdate any forward-looking statements, whether as a result of newinformation, future events or results or otherwise, except as requiredby law. There can be no assurance that forward-looking statementswill prove to be accurate, as actual results and future events coulddiffer materially from those anticipated in such statements. Accordingly, investors should not place undue reliance onforward-looking statements.
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