VANCOUVER, Sept. 20, 2012 /CNW/ - Mediterranean Resources Ltd. (TSX: MNR; Frankfurt: MHM1) - ("MNR" or the "Company") wishes to announce that it has signed an MOU with Remzi Gur, the principal of an important Turkish industrial enterprise, the Ramsey Group (Gurmen), to incorporate this group as a strategic partner in the Company's main subsidiary in Turkey, Akdeniz Resources Madencilik. This subsidiary holds the Company's licenses on the north side of the Coruh River which include the Company's Tac and Corak deposits (also known as the Kizildag project), which have been the subject of past resource statements and a preliminary economic assessment in September 2011.
As part of MNR's plan to make the Kizildag project self-funding and to also "Turkify" the project, the Company will be incorporating an as yet unspecified company in the Ramsey Group as a 20% shareholder in Akdeniz, and a further 5% stake will be in the hands of another Turkish strategic partnership. Thereafter, MNR intends to float 15% of Akdeniz to the investing public in Turkey via an IPO on the "venture exchange" (the GIP) or the Secondary National Market of the Istanbul Stock Exchange in coming months in one or more tranches. To this end the Company has initiated talks with various Turkish investment banks with a view to appointing a Lead Manager for the transaction.
The consideration for the Ramsey entity's subscription to new shares in Akdeniz will be calculated in relation to the balance sheet of Akdeniz, adjusted for MNR converting 11 million Turkish Lira (out of loans of TL14mn) in debt owed to it by the subsidiary, Akdeniz, into equity.
As part of this transaction, the Ramsey Group interests and their associates will also have the option to acquire 49% of Celtik Madencilik, MNR's other Turkish subsidiary. Celtik Madencilik holds the two licenses on the south side of the Coruh River which encompass the Celtik deposit on which two drilling campaigns have been conducted but on which no resource has been calculated as yet.
About Mediterranean Resources Ltd.
Mediterranean acquired an undivided interest in the Tac and Corak properties from Teck Cominco in 2006. Approximately $18 million in cumulative expenditures have been made to date. The Cevreli and Celtik properties were acquired directly by MNR. Mediterranean is well financed for continued exploration.
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 Release.
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.
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