Vancouver, Canada – TheNewswire – November 3, 2021 – Medgold Resources Corp. (TSXV:MED) (OTC:MGLDF) (“Medgold”, the “Company”) is pleased to announce that it has entered into a binding option agreement (the “Agreement”) with MetalsTech Limited (ASX: MTC) , (“MetalsTech”) in regard to the sale of the Company’s interest in 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 total consideration of A$3,000,000 in cash (the “Acquisition”).
The Option is exercisable by MetalsTech on or before the sooner of (i) thirty calendar days from the Effective Date of the Agreement and (ii) seven calendar days subsequent to MetalsTech advising Medgold that it has completed its due diligence. Completion of the Acquisition is subject to and conditional upon the satisfaction of certain conditions (“Conditions Precedent”), including conversion of Fortuna Silver Mines’ 51% interest in the Tlamino Project to a 1% net smelter return royalty, and regulatory approvals in Canada and Australia. An option fee of A$100,000 in cash is payable by MetalsTech to Medgold within three business days of the Effective Date of the Agreement. If MetalsTech exercises its option, a further cash consideration of A$2,900,000 is payable by MetalsTech to Medgold within three business days of the satisfaction (or waiver) of the Conditions Precedent in order to acquire the Tlamino Project.
A 5% finder’s fee is payable, half in Medgold shares and 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’s Serbian business. If completed, the proceeds of the Tlamino sale will allow us to focus on acquiring and advancing other exploration properties of merit. We’re already actively searching for new precious and base metal projects and I look forward to updating shareholders in due course.”
About Medgold Resources Corp.
Medgold is a TSX-V listed, gold exploration company targeting early-stage properties in the Balkan region. Run by an experienced management team with a successful track-record of building value in resource companies, Medgold is focused on growth through fast-paced exploration and resource definition in the prospective and under-explored Balkan region, and beyond.
ON BEHALF OF THE BOARD
Jeremy Crozier, President and CEO
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President and CEO
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Certain statements contained in this news release constitute forward-looking statements within the meaning of Canadian securities legislation. All statements 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 by the use of words such 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 similar expressions, including negative variations.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any results, performance or achievements expressed or implied by forward-looking statements. Such uncertainties and factors include, among others, whether MetalsTech completes its diligence on the Tlamino Project to its satisfaction; whether the Conditions Precedent to the Acquisition are satisfied; whether the sale of the Tlamino Project will be completed as planned; whether the Company is able to locate and acquire interests in satisfactory projects in the future; and such other risks detailed from time to time in the Company’s quarterly and annual filings with securities regulators and available under the Company’s profile on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.
Forward-looking statements contained herein are based on the assumptions, beliefs, expectations and opinions of management, including but not limited to: that the sale of the Tlamino Project will be completed as planned; that the Company’s stated goals and planned exploration and development activities will be achieved; that there will be no material adverse change affecting the Company or its properties; and such other assumptions as set out herein. Forward-looking statements are made as of the date hereof and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by law. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on forward-looking statements.