Mediterranean Resources Limited Signs MOU For Sale of Yusufeli Project
29.09.2010 | CNW
VANCOUVER, Sept. 29 /CNW/ - Mediterranean Resources Ltd. (the "Company") (TSX MNR, Frankfurt MHM1) is very pleased to announce it has signed a Memorandum of Understanding (MOU) for the advancement and sale of its Yusufeli gold project in north-eastern Turkey. Further to its news release of June 25, 2010, MNR has agreed to sell the Yusufeli project to one of Turkey\'s leading mining companies, for a combination of cash to be paid over time, and a retained royalty interest. The MOU is subject to approval by the Turkish company\'s Board of Directors, which approval MNR expects to receive within two weeks\' time.
MNR is pleased to be partnered with a recognized Turkish firm, not only with expertise in mining, but also having the people and capabilities to facilitate the rapid advancement and development of the Yusufeli project far more efficiently and effectively than could MNR on its own.
Following formal execution of the MOU, the parties will move forward to negotiate a definitive agreement, which will be subject to both TSX and shareholder approval.
Ongoing Work
SRK Consulting (Canada) Inc. is conducting a preliminary economic assessment ("PEA") of the Tac and Corak deposits. A metallurgical test program for the two deposits has been completed, which provided the necessary information to determine the appropriate process design criteria and processing flowsheets. Whittle open pit optimization analysis is also complete, and detailed cost estimation and site layout work is on-going. A NI 43-101 compliant technical report outlining the PEA is expected within the next four months.
About Mediterranean Resources
MNR is an advanced gold exploration company operating in north eastern Turkey. MNR controls a contiguous 12km mineralized trend known as the Yusufeli project. MNR has a 100% interest in the Tac and Corak deposits where an NI 43-101 compliant resource estimate established an indicated resource of 49.5 million tonnes grading 0.99 g/t Au containing 1.58 million ounces of gold and an inferred resource of 11.0 million tonnes grading 0.83 g/t Au containing 290,000 ounces of gold. Approximately $16 million in cumulative expenditures have been made to date on the project.
On behalf of the Board of Directors,
"Dr. Peter J. Guest"
President & CEO
Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that the actual developments or results may vary materially from those in these "forward-looking statements". There are certain risks associated with the proposed sale, including that: a definitive agreement may not be negotiated or settled on terms acceptable to MNR; all conditions precedent, including TSX and shareholder approvals, may not be satisfied or waived; MNR may not be successful in settling existing royalty interests on the project; and all necessary permits required to put the project into production may not be obtained.
The TSX does not accept responsibility for the adequacy or accuracy of this release.
For further information:
Peter J. Guest
President & CEO
604-669-3397
pguest@medresources.ca
or
John Walter
Communications Manager, IR
Ph: 1-647-430-0197
john@jfwalter.com
www.medresources.ca