MRL Marlowe Plc

    Medoro Resources Agrees to Acquire Venezuelan Gold Properties

 

    TORONTO, March 22 /CNW/ - Medoro Resources Ltd. (TSX-V/AIM: MRL)

announced today that it has entered into an agreement to acquire all of the

shares of Panwest Seas Corporation Ltd., which holds the rights to the Lo

Increible 4A & 4B exploration properties located in the El Callao area of the

State of Bolivar, Venezuela.

    The Lo Increible 4A and 4B properties, totaling 2,216 hectares, are

located immediately north, and adjacent to, Crystallex International

Corporation's La Victoria property in the El Callao district of Venezuela. In

addition to Crystallex, Gold Fields, Hecla Mining and CVG-Minerven all have

producing gold mines and are actively exploring for gold in the area. The

properties are held under mining contracts granted by Corporacion Venezolana

de Guayana (CVG).

    A significant amount of exploration work has been done on the Lo

Increible concessions over the past decade, resulting in reserve and resource

estimates for the La Cruz, El Tapon, La Sofia and La Loca showings, using a

1.0 g/t cut-off:

 

                          Tonnes      Grade     Gold

                           (000)      (g/t)     (ozs)

    Indicated resource     5,920       3.9     746,000

    Inferred resource      4,731       3.6     548,000

    including

    Probable reserves      2,068       3.4     225,000

 

    The above resource and reserve estimates are historical in nature, have

not been verified by Medoro's qualified person, and should not be relied upon.

Medoro has initiated its own independent review, the results of which will be

available in the near future.

    In addition to these resources, there are strong drill indications of at

least five additional targets - Lapa Dos, Corinas, Tabaire, Los Gritos and La

Cruz West. In addition, there are multiple, strong geochemical soil and rock

sample anomalies that have excellent exploration potential. Also, drilling has

shown that high grade ore shoots occur at depth below the La Cruz deposit.

Medoro intends to initiate an aggressive exploration and resource definition

program on the properties.

    Medoro will issue 120,000,000 common shares to the shareholders of

Panwest in consideration of the acquisition of Panwest, and will pay

US$1,000,000 in cash, payable upon closing. The company has also agreed to pay

to the sellers a royalty of US$15 per ounce of gold on all production from the

Lo Increible 4A & 4B mining properties.

    Panwest is incorporated under the laws of the British Virgin Islands and

is beneficially owned by a group of ten shareholders consisting of Corporacion

Vengroup, S.A, which owns 35% of Panwest's shares, The Carrington Trust (12%),

The BP Trust (12%), Torino Consultants Ltd. (12%), The KFK Trust (12%),

Orinoquia Belt, C.A. (7.5%), Socobal Corporation (3.25%), Andes Investments

A.V.V. (3.25%), Amerisur Corporation Ltd. (2%) and Peter Volk (1%). All of

these shareholders are at arms' length to the company, other than The BP

Trust, to which Serafino Iacono provides investment advice, Torino

Consultants, which is beneficially owned by Miguel de la Campa, The KFK Trust,

the beneficiaries of which are the family of Jose Francisco Arata, Orinoquia

Belt, which is beneficially owned by Miguel de la Campa and, indirectly, by

The BP Trust and Peter Volk. Each of Serafino Iacono, Miguel de la Campa and

Jose Francisco Arata are directors of the company and Peter Volk is an officer

of the company. As a result, the acquisition of Panwest is regarded as a

"related party transaction" under Ontario Securities Commission Rule 61-501

("OSC Rule 61-501"). Pursuant to OSC Rule 61-501, the Board of Directors,

excluding Messrs Iacono, de la Campa and Arata, have approved the transaction

subject to the receipt of an independent valuation of Panwest's properties. In

addition, the transaction is subject to regulatory approval and requires the

approval of a majority of Medoro shareholders, excluding shares held by

interested parties.

 

    Medoro Resources is a gold exploration and development company focused on

acquiring properties of merit for potential joint ventures with senior

producers.

 

    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT

    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE

 

    For further information: Peter Volk, Secretary, (416) 603-4653,

pvolk(at)medororesources.com

    (MRL.)



END

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