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MGM Mineral Resources Signs Letter of Intent to Acquire the "Manantiales" Property in the Province of Antioquia, Colombia
MGM Mineral Resources Inc. (OTC: MGMX), a precious metal mining company focused on the development of producing properties internationally, announces that preliminary discussions have enabled them to sign a Letter of Intent in the acquisition of the Manantiales property.
This property is located at the northern end of Colombia's central Cordillera, just two kilometers from the other MGM property, La Esperanza. Just like La Esperanza, this future promising land is contained within a gold producing belt, which stretches for over 150 kilometers from Sanata Isabel in the south through Remedios and Segovia to Zaragoza, l Barge, and Caucasia in the north. The region remains and always has been a major contributor to the national production of gold and silver. The area is currently seeing an influx of activity and interest from mining companies around the world, which made it very difficult to lock up the Letter of Intent, due to the overwhelming demand from North American and European gold companies.
"We are very pleased with how our negotiations are proceeding," stated Kenneth Lamb, President of MGM Mineral Resources. "Our due diligence has been moving forward at a rapid pace and we expect to have a definitive agreement in place very soon. If our estimates are correct, this operation will deliver considerable value to our holdings."
The Manantiales mine consists of an area measuring 24 hectares and 4645 square metres. In preliminary studies by our new Lead Geologist, this mine is smaller in both size and probable reserves than our La Esperanza project, but, recent studies indicate that the gold is of higher grade.
"If all goes as expected with the Manatiales project, it will join hands with La Esperanza mine to become the cornerstone of MGM's precious metals holdings," concluded Mr. Lamb.
The company expects to sign the acquisition agreement by end of May 2006, if not sooner.
About MGM Mineral Resources
Metro Gold Mines Mineral Resources S.A. is an independent precious metal mining company engaged in the acquisition and development of an impressive portfolio of exploration and production properties internationally. The Company's staff consists of economists, senior geologists, mining engineers, and experts in environmental management, all of them with extensive experience resulting in the best knowledge to explore and develop the interests of the company.
