Management announces sale of an asset. Not sure whether
to be pleased or disappointed. Will provide treasury with a bitb less than 3 million dollars [assume Canadian]
"(“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.”
