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
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
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
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
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)
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.
SOURCE: Mediterranean Resources Ltd.
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