Acquisition(s)
October 21 2004 - 3:01AM
UK Regulatory
Medoro Resources Announces Completion of Sale of SGM
TORONTO, Oct. 21 /CNW/ - Medoro Resources Ltd. (TSX-V/AIM: MRL) announced
today the completion of the sale of Sardinia Gold Mining SpA ("SGM") to
Sargold Resource Corporation (TSX-V: SRG).
As previously announced, Sargold has acquired all of the outstanding
shares of Medoro's Australian subsidiary, Gold Mines of Sardinia Pty. Ltd.,
resulting in Sargold acquiring Medoro's 90% interest in SGM. Consideration for
the acquisition consisted of (euro) 6 million in cash, payable over a period
of 60 months, C$1 million in common shares of Sargold, and a 2% net smelter
return royalty interest, which Sargold has the right to buy back for
US$1 million per percent.
Medoro Resources has approximately C$4.0 million in cash,
(euro) 5.5 million in receivables from Sargold, no debt and interests in
Miniere di Pestarena s.r.l. and the Monte Ollasteddu concession in Sardegna,
the latter subject to an earn-in agreement whereby Bolivar Gold Corp. (TSX:
BGC) has already earned a 15% interest and can earn, in total a 70% interest,
with Gold Fields Limited (NYSE/JSE: GFI) currently funding all work in order
to earn a 60% interest in the project.
The completion of this transaction leaves the company in a position to
benefit from its exploration potential, now fully funded by others, and with
sufficient resources to identify other opportunities throughout Europe.
For further information: Peter Volk, Assistant Secretary,
1 (416) 603-4653, info(at)medororesources.com
(MRL)
END
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