VANCOUVER, Jan. 8, 2014 /CNW/ - Mediterranean Resources Ltd. (TSX: MNR; Frankfurt: MHM1) ("Mediterranean" or the "Company") acknowledges it has received a requisition from two shareholders, Waratah Investments Limited and Waratah Capital Ltd., that hold, collectively, 12,193,500, or approximately 8.58 per cent, of the issued and outstanding common shares of the Company, for a general meeting of shareholders, which the Company has determined will be held on May 7, 2014.
Mediterranean notes that the requisition has no financing component nor business plan as to what will be done to protect the Company's assets, including the initiation of an environmental impact study application and the completion of an engineering study with respect to the Company's properties. Nor is there any indication as to how its land management practices will be maintained or its licenses protected during a period of changes to the mining law and regulations in Turkey.
From discussions with the principal of Waratah Investments during 2013, Mediterranean believes that the this requisition is an opportunistic attempt to force a business combination between Mediterranean and a company listed on the OTC Bulletin Board in the US, Blox Inc (formerly Nava Resources Inc). The principal of Waratah folded some mining (and other) assets in Ghana (and elsewhere) into this vehicle in June 2013 and entreated Mediterranean to do likewise. Mediterranean notes that the proposed slate of directors includes Rob Abenante, a Director of Blox and its VP Operations.
As previously announced the Company is advancing with the financing proposal for USD$2million to $7million it has received from Lionsbridge Pty Ltd. Mediterranean has thus already initiated a reorganization plan that provides a new management team with a proven track in bringing mines into production in a timely fashion. This reorganization is projected to take place far in advance of the May 7th date for the proposed requisitioned meeting.
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) deposit.
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.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release.
SOURCE: Mediterranean Resources Ltd.
For further information:
President and CEO