VANCOUVER, Jan. 8, 2014 /CNW/ - Mediterranean Resources Ltd. (TSX: MNR;
Frankfurt: MHM1) ("MNR" or the "Company") wishes to advise that it,
subject to TSX or, if required, shareholder approval, has entered into
an Agreement with Lionsbridge Pty Ltd, an Australian company,
controlled by the Wesson family.
The Board of MNR has considered the terms of the agreement and believe
the agreement represents the best value for shareholders
Under the terms of the agreement:
Lionsbridge will raise CAD$2-7 million CAD as a private placement into
MNR's Board is committed to initiate all appropriate actions necessary
to affect the Agreement.
The Antimony projects in Spain (currently in a subsidiary called
International Antimony Mines) will be spun out of MedRes as a separate
listing on the TSX-V with Christopher Ecclestone as its CEO. MNR will
seed the new entity with sufficient capital to ensure its independence
when the shares of the newco have been distributed to the shareholders
At the Close of the financing, MNR's current management will resign
their positions. Two of the existing directors will remain until the
Antimony spinout transaction has closed and then subsequently resign
from the MNR BOD.
Lionsbridge will take over management of MNR. The board will be
comprised of five members, two insiders a Chairman/CEO and director
appointed by Lionsbridge, one independent director nominated by
Lionsbridge and two further independent directors to compliment board
Lionsbridge's management contract is to be conducted on a cost + fee
Westech, a consultancy owned by the Wesson family, will be retained by
the company for project engineering and are committed to complete the
remaining engineering requirements of the Turkish project on the same
costs + overheads basis. However, certain restrictions prevent
Lionsbridge personnel from receiving Westech's engineering services.
The principal of Lionsbridge is Brian Wesson (MBA) an engineer with
extensive experience in the management and operations of natural
resource assets. Brian is a Fellow of the Australian Institute of
Mining and Metallurgy and a Fellow of the Australian Institute of
Company Directors. Brian served as Chief Executive Officer, Director
and President at Woulfe Mining Corp. a listed TSX-V company from
December 17, 2009 until February 27, 2013. Previously he was the
Chairman, CEO and Owner of the Vatukoula Gold Mine, formerly Emperor
Gold Mines. He is the Principal of Westech International Pty Ltd. He
has over 30 years of experience in the resource and energy sectors.
Brian started his career as an engineer with Rand Mines Limited South
Africa. He qualified in 1983 and was appointed as a senior manager at
Harmony Gold Mine before holding technical management roles on East
Rand Proprietary Mines, Durban Roodepoort Deep and Vatukoula Gold Mine.
He served as the Chairman of the Sydney Branch of the Australasian
Institute of Mining & Metallurgy. Brian has served on several natural
resource boards throughout the world.
The board of MNR views this proposal as the best way to move forward
both its Turkish projects and its nascent Antimony business in Spain
About Mediterranean Resources
The company is developing two mines 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. Current NI 43-101 compliant resource
estimates for the Taç and Çorak projects total 1.58 million ounces gold
Indicated and 0.29 million ounces Inferred, as well as an Indicated
resource of 64 million lbs of copper, 141 million lbs of Lead and 340
million lbs of Zinc. 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.
For further information:
President and CEO