Medgold Resources announced that the company has signed a binding option agreement to sell its 100% interest in the Tlamino gold project located near Bosilegrad in the far southeast of Serbia, to Australia based MetalsTech for approx. $2.2 million (A$3,000,000).
Regarding to the agreement, Medgold stated that the exclusive option is exercisable by MetalsTech on or before 30 calendar days from the effective date of the agreement and seven calendar days subsequent to MetalsTech advising Medgold that it has completed its due diligence.
The company noted that completion of the acquisition is subject to the satisfaction of certain conditions, including the conversion of the 51% interest in the Tlamino project of Fortuna Silver Mines, a partner of Medgold, to a 1% net smelter return royalty and regulatory approvals in Canada and Australia.
Medgold Resources also shared details on the conditions: “An option fee of $73.000 (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 approx. $2.1 million (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.”
Medgold President and CEO Jeremy Crozier: “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.”
