Mediterranean Resources advises discussions on move to CSE and developments on financing offers
VANCOUVER, March 21, 2014 /CNW/ - Mediterranean Resources Ltd. (TSX: MNR) (Frankfurt: MHM1) ("MNR" or the "Company") wishes to advise that it is in discussions with the Canadian Securities Exchange ("CSE") with a view to transferring its listing to that market.
The Company has taken this decision in light of the frustrations it has encountered in contemplating the various financing offers it has received in recent times. The Lionsbridge offer could not advance after we had received from them a firm financing proposal of $2mn on the 22nd of February that would have required an exemption from shareholder approval.
The offer from the Kaya consortium could not advance because the TSX rules did not permit the immediate cash sale of its 96.3% interest in the Akdeniz subsidiary for which it had received a firm offer from the interested parties.
The principal member of the Kaya consortium withdrew its interest in the transaction as a result.
The Lionsbridge group advised us earlier this week that they intended to pursue a transaction with MNR at some future date via an AIM-listed shell. MNR advised Lionsbridge that in light of the financing it had announced with a group of Swiss and Turkish investors that it could no longer continue with the Services Agreement signed in early January with Lionsbridge.
The Company wishes to advise that it has received two debt offerings in recent days. The smaller offer was from a party that had previously offered debt financing then arbitrarily withdrew said offer. The larger offer (a convertible loan) came without a term sheet as to charges against the company's assets and did not identify which party would be the eventual investor.
It has been a long-term policy of the company to eschew debt financings, as a junior explorer without revenue streams accepting such an offer would be irresponsible in taking on such a burden if it was unable to service such debt. However the company remains open to the fleshing out of the terms of the offer or its adjustment to a commercially realistic basis.
About Mediterranean Resources
The company is developing two mine projects located at its 100%-owned Red Mountain (Kızıldağ) Project in Northeastern Turkey. The projects consist of the Tac (gold/copper) deposit and the Corak (gold/zinc/lead) deposit.
Tac and Corak were the subject of an NI 43-101 resource statement prepared by SRK in 2009 and a Preliminary Assessment (also by SRK) prepared in September 2011. The company plans on advancing these deposits into production through open-pit mining.
Signed on behalf of the Board of Directors.
Forward-Looking Statements: This Mediterranean Resources Ltd. news release may contain certain "forward-looking" statements and information relating to Mediterranean which are based on the beliefs of Mediterranean management, as well as assumptions made by and information currently available to Mediterranean management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein.
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