TORONTO, July 29 /CNW/ - Medoro Resources Ltd. (TSX-V: MRS) announced
today that it has executed a letter of intent to acquire all of the issued and
outstanding shares of Colombia Gold plc, a privately held UK company whose
main assets are the mining rights to the Echandia property. The Echandia
property lies below, and adjacent to, the Marmato properties to which Colombia
Goldfields Limited (TSX: GOL; OTBCC: CGDF) has rights. The acquisition of
Colombia Gold, and its Echandia property, when completed and when combined
with Medoro's proposed acquisition of Colombia Goldfields Limited, will give
Medoro a significant interest in the historic Marmato gold district of
Colombia.
Consideration for the acquisition will be the issuance of 33,333,333
Medoro shares and the payment by Medoro, upon closing, of C$2.6 million of
Colombia Gold's outstanding debt.
Completion of the transaction is subject to the negotiation and execution
of a definitive agreement, satisfactory completion of technical, financial,
legal and other commercial due diligence and customary conditions, including
legal and regulatory approvals.
Medoro Resources is a gold exploration and development company focused on
acquiring properties of merit for potential joint ventures with senior
producers. The company recently announced the execution of an arrangement
agreement to acquire the securities of Colombia Goldfields Ltd., which has
properties located in the Marmato District of Colombia. Medoro also holds a
100% interest in the Lo Increible 4A and 4B concessions in Venezuela and
interests in eleven gold exploration areas in the Republic of Mali. Additional
information on Medoro Resources can be found by visiting the company's website
at www.medororesources.comwww.medororesources.com.
This press release contains forward-looking statements based on
assumptions, uncertainties and management's best estimates of future events.
Actual results may differ materially from those currently anticipated.
Investors are cautioned that such forward-looking statements involve risks and
uncertainties. Important factors that could cause actual results to differ
materially from those expressed or implied by such forward looking statements
are detailed from time to time in the company's periodic reports filed with
the British Columbia Securities Commission and other regulatory authorities.
The company has no intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.%SEDAR: 00020446E
For further information: Peter Volk, General Counsel & Secretary, (416)
603-4653
