TORONTO, April 6 /CNW/ - Medoro Resources Ltd. (TSX-V: MRS) announced today that on Monday, April 5, 2010, the Minister of Mines and Energy, Sr. Hernan Martinez, on behalf of the Colombian Government, issued a press release supporting Medoro's recently announced proposed acquisition of Frontino Gold Mines Limited. The release stated:
"Bogota, April 5 (SP). The National Government wishes to inform as follows:
On March 31, Frontino Gold Mines Limited, currently in mandatory liquidation, and the mining company Zandor Capital, a subsidiary of the Canadian company Medoro Resources, entered into a promise of sale, which will allow for a resolution of the serious problems faced by (Frontino) and for the clearance of the obstacles that compromised its viability.
The deal, approved last week by the Advisory Board composed of workers and pensioners of (Frontino), insures full payment of all pension entitlements for the life of the employee as well as the stability of the current workforce of the company.
The agreement includes, in addition to payment of all obligations of the company in liquidation, with a special emphasis on pension liabilities, social commitments of vital importance to this region and its workers; such as payment of health contributions for pensioners, a contribution destined for the financing of social projects in the area which will increase as production and the price of gold increase, as well as the possibility of equity participation in Medoro by any workers of the company who so desire.
The closing of this transaction clears the way for a better future for more than three thousand families in the municipalities of Segovia and Remedios whose livelihoods depend on gold mining. The agreement reached by these companies opens the door to an industrial modernization plan that will substantially improve the environmental, labour and industrial safety standards of the project as well as to an ambitious social management plan, as proposed by the National Government.
Frontino Gold Mines, after a fruitless search for a solution to its debt problems, went into mandatory liquidation in 2004 and, before the current negotiations, had failed to find a buyer.
These negotiations are a demonstration of investor confidence in Colombia and, moreover, will result in social advancements for the region as well for the mining industry of the country."
John Hick, CEO of Medoro stated, "We are very pleased to have the support of the Colombian Government for our acquisition of Frontino and look forward to completing the transaction and implementing our investment and social programs, which we believe will bring substantial benefit to the people of Segovia and Remedios." (Please see the Company's press release dated March 31, 2010.)
Sintraminergetica, the union representing certain of Frontino's workers, has asserted that it has filed a criminal complaint against Mr. Serafino Iacono, a significant participant in Medoro's proposed joint venture partner in its acquisition of Frontino (as discussed in Medoro's press release of March 31, 2010 referred to above), regarding statements he has allegedly made. Neither Medoro nor Mr. Iacono are aware of any such criminal complaint or of any actionable statements alleged to be made by Mr. Iacono.
About Medoro Resources Ltd.
Medoro Resources Ltd. is a gold exploration, development and mining company with a primary emphasis on Colombia. The Company operates the producing Mineros Nacionales gold mine located in Zona Baja at Marmato and is conducting an exploration and infill drilling program at its Marmato Project to upgrade and expand its gold resources there.
On March 31, 2010, Medoro signed an asset purchase agreement to acquire all the assets of Frontino Gold Mines Limited. This acquisition is scheduled to close by July 31, 2010, subject to certain due conditions including legal and technical due diligence and requisite regulatory approvals.
Medoro also holds a 100% interest in the Lo Increible 4A and 4B concessions in Venezuela where it is continuing its efforts to obtain an exploitation permit to allow development of these gold properties when circumstances in Venezuela allow. Medoro owns interests in gold exploration properties in Mali in respect of which it is seeking possible joint venture partners to further explore these properties
Additional information on Medoro Resources Ltd. can be found by reviewing the Company's profile on SEDAR at www.sedar.com.
This news release contains "forward-looking information", which may include, but is not limited to, statements with respect to the future financial or operating performance of Medoro and its projects. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Medoro to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and Medoro disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
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.
SOURCE MEDORO RESOURCES LIMITED
For further information: For further information: John Hick, President & CEO, (416) 603-4653; Linda Dorrington, Director, Investor Relations, (416) 603-4653