VANCOUVER, March 20, 2014 /CNW/ - Mediterranean Resources Ltd. (TSX:
MNR) (Frankfurt: MHM1) ("MNR" or the "Company") wishes to advise that
it has received a debt financing proposal from Robert Abenante, who is
also currently the CEO of Blox inc. (OTCQB:BLXX).
The Company notes that three of the proposed directors for the slate
offered by Waratah for the May EGM of the Company are also directors of
Notwithstanding this, we note that in a recent news release authored by
"Anonymous from Waratah", which was published by several newswires,
cites one Ronald Renne, sometime CEO of Blox Inc., as denying that he
had ever had discussions with MNR on a proposed merger. We can confirm
that we only know Mr. Renne in his context as chauffeur to the
principal of Waratah and discussions in the past with Mr. Renne have
been limited to the subjects of traffic conditions and luggage.
The offer from Mr. Abenante contemplates MNR taking on a convertible
debt of "1,000,000 CAD in MNR via a convertible note, convertible at
$0.05, with a full $0.05 warrant with a 3 year expiry". The investor
was not revealed to MNR.
The board is considering this proposal in light of the equity offer from
the Swiss investors, who subscribed the Private Placing announced in
the News Release dated 18th of March 2014. The board is cognizant that a company such as MNR, with
no prospect of production before early 2016 at the earliest, would, in
accepting Mr. Abenante's offer, become indebted with no means of
servicing such debt.
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. 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.
The Toronto Stock Exchange does not accept responsibility for the
adequacy or accuracy of this release.
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy securities of the Company in any
jurisdiction. The securities to be issued pursuant to the Offering by
the Company have not and will not be registered under the United States
Securities Act of 1933, as amended (the "1933 Act"), or the securities
laws of any states of the United States, and may not be offered or sold
in the United States absent registration or an applicable exemption
therefrom under the 1933 Act and the securities laws of all applicable
Certain information set out in this News Release constitutes
forward-looking information, which may include information relating to
exploration and development of the Company's properties.
Forward-looking statements (often, but not always, identified by the
use of words such as "expect", "may", "could", "anticipate", or "will",
and similar expressions) may describe expectations, opinions or
guidance that are not statements of fact and which may be based upon
information provided by third parties. Forward-looking statements are
based upon the opinions, expectations and estimates of management of
the Company as at the date the statements are made and are subject to a
variety of known and unknown risks and uncertainties and other factors
that could cause actual events or outcomes to differ materially from
those anticipated or implied by such forward-looking statements. Those
factors include, but are not limited to risks, uncertainties and other
factors that are beyond the control of the Company, risks associated
with the industry in general, commodity prices and exchange rate
changes, operational risks associated with exploration, development and
production operations, delays or changes in plans, risks associated
with the uncertainty of reserve estimates, health and safety risks and
the uncertainty of estimates and projections of production, costs and
expenses. In light of the risks and uncertainties associated with
forward-looking statements, readers are cautioned not to place undue
reliance upon forward-looking information. In particular, there is no
assurance that the private placement will close in the manner or on the
terms outlined above; or that either the Preliminary Economic
Assessment or the Environmental Impact Assessment will be prepared in a
manner acceptable to the Company or any governmental regulatory
authority. Although the Company believes that the expectations
reflected in the forward-looking statements set out in this press
release or incorporated herein by reference are reasonable, it can give
no assurance that such expectations will prove to have been correct.
The forward-looking statements of the Company contained in this press
release, or incorporated herein by reference, are expressly qualified,
in their entirety, by this cautionary statement.
SOURCE: Mediterranean Resources Ltd.
For further information:
President and CEO