Source: SeeNews
  • Medgold Resources Corp. (MED) has signed two definitive agreements with Fortuna Silver Mines (FVI)
  • The agreements empowers Medgold to acquire Fortuna’s 51 per cent interest in the Tlamino Project, located in Serbia
  • The first agreement terminates the former option agreement signed by the two for Medgold to acquire the interest for US$ 3.468 million in cash
  • The second agreement converts the interest to a one-per-cent net smelter return royalty in favour of Fortuna
  • Medgold is a gold exploration company with operation in the Balkan region
  • Medgold Resources Corp. opened trading at $0.015 per share

Medgold Resources Corp. (MED) has signed two definitive agreements with Fortuna Silver Mines (FVI).

Under the agreements, Medgold will acquire Fortuna’s 51 per cent interest in the Tlamino Project, located in Serbia.

The first agreement terminates the former option agreement earlier signed by the two parties for Medgold to acquire the interest for US$ 3.468 million in cash.

The second agreement converts the interest to a one-per-cent net smelter return royalty in favour of Fortuna.

The royalty may be purchased at any time for a cash consideration of $3 million dollars.

Medgold is seriously evaluating an array of strategic options for the project based on 100-per-cent ownership, and expects to be able to report on these in due course.

The Tlamino Project covers an area of approximately 200km2 in southern Serbia and is held by Medgold under two exploration licences.

Medgold conducted mapping, surface sampling and geophysics (IP) followed by diamond drilling at the Barje Prospect in 2018 and 2019, all fully funded by Fortuna.

As earlier announced, these successfully intersected gold mineralization in a shallowly inclined body of hydrothermal breccia below altered schist.

The inferred mineral resource at the Barje Prospect extends from surface to a depth of approximately 110m as a shallowly inclined zone over an area of approximately 600 m x 350 m. The true thickness of mineralization generally ranges between 10 m to 40 m.

Medgold is a gold exploration company targeting early-stage properties in the Balkan region.

Medgold Resources Corp. opened trading at $0.015 per share.


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