VANCOUVER, June 7, 2012 /CNW/ - Mediterranean Resources Ltd. (TSX: MNR)
(Frankfurt: MHM1) ("MNR" or the "Company") wishes to give an update on
its strategy for the remainder of 2012. It shall be engaged in the next
few months in closing its previously announced transaction with Golden
Touch Resources Corp. (TSXV: GOT) to acquire GOT's exploration
properties in Albania and integrating these properties, which consist
of gold, copper, PGE and chromite exploration targets, into the
Company. The Company notes that both the chromite and copper targets
consist of past producing areas including, in the case of the Rubiku
copper target, past-producing areas that were under major development
and extraction from the 1930s to the 1990s.
The Chromite Spin-Out
It is the intention of the Company to distribute the chromite assets to
be acquired from GOT into an entity listed on the TSX Venture Exchange.
The Company intends that its current shareholders will receive shares
of this new chromite entity on a pro rata basis, and hopes to complete
this spin out in the second half of 2012. The Company intends to
augment the initial assets in Albania with additional exploration and
producing or near-producing chromite prospects from around the world.
The Company has already commenced discussions with vendors of chromite
properties in Albania, Turkey and Canada. Once the distribution has
been completed, the new chromite entity will not be dependent on MNR
for its financing needs and may avail itself of flow-through financing
for assets it may be working on in Canada.
Separating our Turkish assets into different vehicles
In Turkey the Company has created a new subsidiary, Celtik Madencilik,
into which it will place its exploration licenses, including the Celtik
prospect (for which drill results were announced in 2009 and 2010). The
licenses for the Tac and Corak deposits, which were the subject of the
NI 43-101 Resource Statement of May 2009 and the Preliminary Economic
Assessment of September 2011, will remain in the Company's original
subsidiary, Akdeniz Resources Madencilik A.S. ("Akdeniz").
Listing of Akdeniz in the Turkish capital markets
MNR is currently undertaking discussions with leading investment banks
in Istanbul with a view to possibly listing Akdeniz on the Venture
(GIP) section of the Istanbul Stock Exchange. This would be done via an
IPO of Akdeniz with the inclusion of a Turkish strategic partner and
outside shareholders (including possibly emerging market funds and
Turkish retail investors).
The Gelişen İşletmeler Piyasaları A.Ş. ("GIP") was established in recent
years as a distinct market within the Istanbul Stock Exchange to create
a trading platform for securities issued in order to raise funds from
capital markets by companies that do not fully meet the quantitative
listing criteria (age, capital, proﬁt, market capitalization, etc.) but
have development potential. A market advisor system is established to
help companies to prepare for the GIP application, and the advisor
(known by the acronym, MARAD) co-signs the application. Shares should
be issued by restricting any pre-emptive rights to ensure that the
capital raised goes to the company. IPO or private sales of the
existing shares are not allowed for the same purpose. GIP-listed
companies are also required to issue a corporate governance compliance
Exploration and other plans at Kızıldağ and Celtik
The Company intends to undertake a drilling campaign over the summer
period at Celtik with a view to obtaining more information on the
mineralization identified by previous promising drilling at this site.
This campaign was delayed from the original intention of undertaking it
The Company announced some promising surface sample results at Cevreli
North on the 4th of June. The release for this can be found here: http://www.medresources.ca/news/2012/june04/
Maps showing the area vis a vis previous sampling in the copper zone and a photo of the site can be
found at: http://www.medresources.ca/news/2012/june04/Cevreli-North-Sampling.png
If funds permit, the Company expects to conduct some drilling of the
copper zone at Cevreli North in late summer 2012.
On the Tac and Corak deposits, the Company intends to commission an
engineering study using a large component of Turkish engineering
expertise to obtain more accurate costing and design of the mill and
tailings associated with the move to production. This may result in
re-siting of the mill and tailings from where they were positioned in
the SRK study with resulting benefits for the capex. This fine-tuning
will be immensely useful in lodging an application for environmental
Appointment of Chief Financial Officer
The Company is also pleased to announce the appointment of Anthony
Jackson as Chief Financial Officer. As CFO, Mr. Jackson will be
responsible for all aspects of the Company's reporting and finance
activities. Mr. Jackson is a Chartered Accountant and has had extensive
experience as a director or CFO of numerous corporations (including
Golden Touch Resources) in the metals and mining industry.
Mr. Jackson replaces Ann Fehr as the company's Chief Financial Officer.
The Board would like to express its appreciation to Ms. Ann Fehr for her
contributions to the Company.
About Mediterranean Resources
Mediterranean is a company with exploration assets in Turkey and is in
the process of acquiring further exploration assets in Albania. It
acquired an undivided interest in the Tac and Corak properties from
Teck Cominco in 2006. The Cevreli and Celtik properties were acquired
directly by MNR. Approximately $18 million in cumulative expenditures
have been made to date. The Albanian assets are in the process of being
acquired from Golden Touch Resources (TSXV: GOT). Mediterranean is
well-financed for continued exploration.
On behalf of the Board of Directors.
Neither Toronto Stock Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the Toronto Stock Exchange)
accepts responsibility for the adequacy or accuracy of this News
Certain information set out in this News Release constitutes
forward-looking information, which may include information relating to
the 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. 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 News Release, or
incorporated herein by reference, are expressly qualified, in their
entirety, by this cautionary statement. The Company does not undertake
any obligation to update any forward-looking statements or information
to reflect information, events, results, circumstances, realities or
otherwise after the date on which such statement is made or to reflect
the occurrence of unanticipated events, except as required by law.
SOURCE Mediterranean Resources Ltd.
For further information:
President and CEO