Loading...
newsreleases.gif (1KB)
Loading...
oShow printable version of 'Letter Of Intent Signed To Joint Venture Turkish P...' in a New WindowEmail 'Letter Of Intent Signed To Joint Venture Turkish P...' to a friendWed Dec 3, 2008
Letter Of Intent Signed To Joint Venture Turkish Properties

 
Vancouver, B.C., December 3, 2008 -- Mediterranean Resources Ltd. (TSX: MNR, Frankfurt: MHM1) is pleased to announce that it has signed a letter of intent with Cengiz Holding Co. (Cengiz) to joint venture future development of Mediterranean's mineral properties in Turkey.

Cengiz Holding Co.

Cengiz is a large privately owned Turkish based conglomerate focused on Construction, Energy, Mining, Metallurgy, Chemistry, Tourism and Machinery. Currently Cengiz is operating the largest copper mine in Turkey, the Murgul Copper Mine and Concentrator (3mtpa ore); the Kure Copper Mine and Concentrator (1mtpa ore); the only copper smelter in Turkey, the Samsun Copper Smelter (40,000 tpa blister copper and 140,000 tpa sulphuric acid); the ETI Aluminum Mine and Bayer process Metallurgical Plant (400,000 tpa ore at 50% aluminum, 60,000 tpa aluminum production and up to 150,000 tpa aluminum oxide); and other operations including the Odemis Emirli Antimony Mine and Corum Coal Mine.

Joint Venture

The letter of intent (LOI) contemplates Cengiz acquiring up to a 60% interest in Mediterranean's Yusufeli properties in Turkey, which include the Tac, Corak, Celtik and Cevreli properties. Upon Cengiz earning an interest, future operations will be conducted on a joint venture basis. The LOI will be replaced with a formal agreement within 45 days, during which Cengiz has the right to conduct and conclude its due diligence review of the Yusufeli Properties.

Initially Cengiz will have the right to acquire a 20% interest in the Yusufeli Properties through:
  1. incurring at least US$2,000,000 of expenditures toward recommended work programs on the Tac, Celtik and Cevreli properties, within 12 months following the date of execution of the formal agreement (the "Effective Date"); and
  2. completing a positive feasibility study of the Corak property within 12 months following the Effective Date.
Subsequently, Cengiz will have the right to acquire an additional 40% interest in the Yusufeli Properties (for a total 60% interest), by:
  1. within two months following completion of the positive feasibility study, providing notice of Cengiz's decision to place the Corak property into commercial production; and within 18 months thereafter, placing the Corak property into commercial production at an average production rate of at least 1,000,000 tonnes per year; and
  2. incurring at least an additional US$3,000,000 of expenditures toward recommended work programs on the Tac, Celtik and Cevreli properties during the same 20 month period.

Mediterranean is looking forward to working with the Cengiz Group. As a Turkish based company, they bring extensive in-country expertise and experience to the final stages of developing the Yusufeli properties, which are expected to greatly expedite the process. Further, Cengiz has the financial capability of placing Corak into production.

The Yusufeli Properties

Mediterranean owns 100% of four exploration properties situated along a 12 kilometre mineralized trend in northeastern Turkey. NI 43-101 compliant resource estimates (over 2 million ounces in total, Au equivalent, indicated and inferred) have been established at the Tac and Corak properties; and ground exploration to develop drilling targets is ongoing at the Cevreli property. The Celtik property, where highly elevated copper and gold values have been encountered in grab samples and soil geochemistry, is the subject of an ongoing 1,500 metre drill exploration program.

Corak Resource Estimate
In 2007 MNR drilled approximately 17,500 metres at Corak over a mineralized area including the Village and South Zones. A NI 43-101 compliant resource estimate (March 11 2008) outlined 542,163 ozs of gold, indicated, on a gold equivalent basis at an average grade of 1.74 g/t using a threshold value of $13/tonne contained metal value. An inferred resource was also outlined of 606,925 ozs of gold on a gold equivalent basis at an average grade of 1.6 g/t and $13/tonne contained metal value.

Tac Resource Estimate
Tac is situated approximately 8 km northeast of Corak. Tac has an NI 43-101 compliant indicated resource of 1,055,954 ozs of gold on a gold equivalent basis at an average gold grade of 1.61 g/t using a threshold value of $13/tonne contained metal value. An inferred resource was also outlined of 123,965 ozs of gold on a gold equivalent basis at an average grade of 1.71 g/t and $13/tonne contained metal value.

For further information please contact:

Dr. Peter J. Guest
President & CEO
604-669-3397

Mr. Douglas Hickey
Manager, Investor Relations
604-629-4807
www.medresources.ca


Certain of the statements made and information contained herein is "forward-looking information", including statements concerning our plans at our mineral projects, which 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 future results, performance or achievements expressed or implied by such forward-looking information. The LOI with Cengiz is non-binding, and any formal agreement is subject to their satisfactory due diligence investigations. There is no guarantee a formal agreement will be entered into. Any formal agreement may contain terms materially different from those outlined above. Future development of the Company's mineral properties is subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, failure to establish mineral resources; delays in obtaining or failure to obtain required governmental, environmental or other project approvals; changes in national and local government legislation or regulations regarding environmental factors, royalties, taxation or foreign investment; political or economic instability; terrorism; inflation; changes in currency exchange rates; fluctuations in commodity prices; delays in the development of projects; shortage of personnel with the requisite knowledge and skills to design and execute exploration programs; difficulties in arranging contracts for drilling and other exploration and development services; dependency on equity market financings to fund programs and maintain and develop mineral properties; risks associated with title to resource properties, and difficulties of determining the validity of certain tenures and other risks and uncertainties, including those described in each management discussion and analysis. In addition, forward-looking information is based on various assumptions including, without limitation, the expectations and beliefs of management; the assumed long-term prices of base and precious metals; the availability of permits and surface rights; access to financing, equipment and labour and that the political environment within Turkey will continue to support the development of mining projects. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.
 
o

You can return to the Top of this page

Web Design & Development by Adnet Communications Inc.Corporate Information | News | Projects  
Investor Information | Contact Us | Home
Loading...
Loading...