Medgold Options Boticas Project to Koza Ltd., and Koza to Invest $1.5m in Medgold
Posted Under: Financing
Vancouver, Canada, March 16, 2015: Medgold Resources Corp. (TSX-V:MED), the European focused gold exploration company, is pleased to announce that it has reached an agreement with Koza Ltd. (“Koza”), a subsidiary of the Turkish gold mining company, Koza Altın İsletmeleri A.Ş., whereby Koza has been granted an option to acquire up to a 75% interest in Medgold’s Boticas gold project in northern Portugal.
Koza can earn an initial 55% interest in the project by spending CAD $3 million on exploration activities on the property over three years, of which $500,000 is committed to be spent in the first year. Upon completion of the initial $3m expenditures, Koza can earn an additional 20% interest by spending a further $3m on exploration over the subsequent three year period, for a total of $6m over six years. In addition, Koza has agreed to invest CAD $1.5m by way of a private placement of Medgold units. Each unit will consist of a common share and one warrant which will be exercisable for 12 months. The placement is intended to take place at the time of signing a formal option / joint venture agreement and will be subject to stock exchange approval.
Dan James, the President of Medgold, commented: “I’m delighted to have reached an agreement with Koza to explore the Boticas project. Today’s announcement is further recognition of the exciting potential of the project, following closely on the Portuguese government’s designation of Boticas as a Project of National Interest. Koza is an experienced partner that has built and operated quality, low cost gold mines in Turkey. We look forward to working with their technical team as we move Boticas forward.”
The Boticas Project
The Boticas gold project is located in northern Portugal between the towns of Boticas and Chaves, 60 km north of Vila Real in northern Portugal. The project hosts orogenic-style gold mineralization, which is hosted in granites, and controlled by a series of narrow quartz veins. The main control on mineralization is considered to be a major northeast-trending fault, and an associated large-scale quartz vein, which demonstrates multiple phases of silicification. The feature has previously been considered barren, and yet while very low-grade, it is considered to be a major control upon the distribution of gold mineralization. The principal prospect of Limarinho is located in the centre of the licence, close to this main quartz vein, and has been the main focus of previous exploration.
A total of 3,234 metres of historic diamond drilling was completed at Limarinho in 26 holes by COGEMA in the 1980’s, and in the early 2000’s by Kernow Resources & Developments Ltd. Key drill intercepts are as follows*:
- KL4 20.4 m @ 2.92 g/t Au from 20.7 m, and 9.05 m @ 3.37 g/t Au from 145.0 m
- PF3 19.7 m @ 2.80 g/t Au from 32.3 m
- PF11 12.1 m @ 2.98 g/t Au from 51.1 m
- PF17 13.5 m @ 2.17 g/t Au from 65.7 m
- PF8 10.0 m @ 1.37 g/t Au from 86.2 m
* These are historical data provided for information purposes and Medgold has not completed sufficient work to verify these results.
These zones of higher grade intersections are located as significant ‘pods’ within a much larger envelope of ~1 g/t Au mineralization.
David Clark, PGeo, consulting geologist to the Company, is a Qualified Person as defined by National Instrument 43-101 — Standards of Disclosure for Mineral Projects. Mr. Clark has reviewed and approved disclosure of the technical information contained in this news release.
About Koza Altın İsletmeleri A.Ş.
Koza Gold Operations Inc. is Turkey’s largest mining company with a market capitalization of approximately US$1.3B. The parent company, Koza Altın İsletmeleri A.Ş., trades on the Istanbul stock exchange. The Company operates a number of gold mines in Turkey and is Turkey’s leading gold producer.
Medgold is a Mediterranean-focused, TSX-V listed gold exploration and development company run by a highly experienced management team with a successful track record of building value in resource companies. Medgold is aiming to become one of the leading Europe gold explorers and developers, focussing on the orogenic gold provinces of northwest Iberia. Both Spain and Portugal are pro-mining, and host large-scale, under-explored gold provinces.
ON BEHALF OF THE BOARD
Daniel P James, Director
For Further Information, Contact:
Ralph Rushton (Vancouver)
Dan James (UK and Portugal)
+44 7972 579188 / +351 912 732334
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Certain statements contained in this news release constitute forward-looking statements within the meaning of Canadian securities legislation. All statements included herein, other than statements of historical fact, are forward-looking statements and include, without limitation, statements about the potential of the Boticas project, the proposed exploration thereon by Koza, the potential acquisition of an interest in the Boticas Project by Koza, and the anticipated private placement by Koza. Often, but not always, these forward looking statements can be identified by the use of words such as “estimate”, “estimates”, “estimated”, “potential”, “open”, “future”, “assumed”, “projected”, “used”, “detailed”, “has been”, “gain”, “upgraded”, “offset”, “limited”, “contained”, “reflecting”, “containing”, “remaining”, “to be”, “periodically”, or statements that events, “could” or “should” occur or be achieved and similar expressions, including negative variations.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any results, performance or achievements expressed or implied by forward-looking statements. Such uncertainties and factors include, among others, the potential exploration of the Boticas by Koza, the acquisition of an interest in the Boticas Project by Koza, and the completion of the private placement by Koza; changes in general economic conditions and financial markets; the Company or any joint venture partner not having the financial ability to meet its exploration and development goals; risks associated with the results of exploration and development activities, estimation of mineral resources and the geology, grade and continuity of mineral deposits; unanticipated costs and expenses; and such other risks detailed from time to time in the Company’s quarterly and annual filings with securities regulators and available under the Company’s profile on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.
Forward-looking statements contained herein are based on the assumptions, beliefs, expectations and opinions of management, including but not limited to: expectations that Koza will make exploration expenditures on the Boticas project by Koza beyond its initial commitment; that the proposed private placement by Koza will be completed; that the Company’s stated goals and planned exploration and development activities will be achieved; that there will be no material adverse change affecting the Company or its properties; and such other assumptions as set out herein. Forward-looking statements are made as of the date hereof and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by law. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on forward-looking statements.