MGLDF - Medgold Resources announces Option Agreement to sell Tlamino Project Serbia
(TheNewswire)
Vancouver, Canada – TheNewswire- November 3, 2021 – Medgold ResourcesCorp. (TSXV:MED) (OTC:MGLDF) (“Medgold”, the “Company”) is pleased to announce that it has entered into a binding optionagreement (the “Agreement”) with MetalsTech Limited (ASX: MTC) ,(“MetalsTech”) in regard to the sale of the Company’s interestin the Tlamino Project in Serbia. Under the terms of the Agreement,Medgold has granted MetalsTech an exclusive option (the “Option”)to acquire a 100% interest in the Tlamino Project for a totalconsideration of A$3,000,000 in cash (the “Acquisition”).
The Option is exercisable by MetalsTech on or beforethe sooner of (i) thirty calendar days from the Effective Date of theAgreement and (ii) seven calendar days subsequent to MetalsTechadvising Medgold that it has completed its due diligence. Completionof the Acquisition is subject to and conditional upon the satisfactionof certain conditions (“Conditions Precedent”), includingconversion of Fortuna Silver Mines’ 51% interest in the TlaminoProject to a 1% net smelter return royalty, and regulatory approvalsin Canada and Australia. An option fee of A$100,000 in cash is payableby MetalsTech to Medgold within three business days of the EffectiveDate of the Agreement. If MetalsTech exercises its option, afurther cash consideration of A$2,900,000 is payable by MetalsTech toMedgold within three business days of the satisfaction (or waiver) ofthe Conditions Precedent in order to acquire the TlaminoProject.
A 5% finder’s fee is payable, half in Medgold sharesand half in cash, with respect to this transaction.
Jeremy Crozier, President and CEO of Medgold, remarked,“We are pleased to have the opportunity to monetize Medgold’sSerbian business. If completed, the proceeds of the Tlamino sale willallow us to focus on acquiring and advancing other explorationproperties of merit. We're already actively searching for new preciousand base metal projects and I look forward to updating shareholders indue course.”
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 Balkan region, and beyond.
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 .
ON BEHALF OF THE BOARD
Jeremy Crozier, President andCEO
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 proposed sale of the Tlamino Project. Often,but not always, these forward looking statements can be identified bythe use of words such as “estimate”, “estimates”,“estimated”, “potential”, “open”, “future”,“assumed”, “projected”, “used”, “detailed”, “hasbeen”, “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, whetherMetalsTech completes its diligence on the Tlamino Project to itssatisfaction; whether the Conditions Precedent to the Acquisition aresatisfied; whether the sale of the Tlamino Project will be completedas planned; whether the Company is able to locate and acquireinterests in satisfactory projects in the future ; and such other risksdetailed from time to time in the Company’s quarterly and annualfilings with securities regulators and available under the Company’sprofile on SEDAR at www.sedar.com. Although the Company hasattempted 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: that the sale of theTlamino Project will be completed as planned; that the Company’sstated goals and planned exploration and development activities willbe achieved; that there will be no material adverse change affectingthe Company or its properties; and such other assumptions as set outherein. Forward-looking statements are made as of the date hereofand the Company disclaims any obligation to update any forward-lookingstatements, whether as a result of new information, future events orresults or otherwise, except as required by law. There can be noassurance that forward-looking statements will prove to be accurate,as actual results and future events could differ materially from thoseanticipated in such statements. Accordingly, investors should notplace undue reliance on forward-looking statements.
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