Over 90% of issued and outstanding shares already acquired
TORONTO, Jan. 18 /CNW/ - Medoro Resources Ltd. (TSX-V: MRS) is pleased to announce that it has acquired 91,863,300 ordinary shares of Colombia Gold plc, representing over 93% of the issued and outstanding shares, pursuant to its offer to acquire all of the issued and outstanding ordinary shares of Colombia Gold. Pursuant to the offer, holders of Colombia Gold ordinary shares will receive 0.338409 of a Medoro common share for each Colombia Gold ordinary share tendered and accepted.
"The combined NI 43-101 compliant measured and indicated resource estimate for the Echandia property, acquired through this acquisition of Colombia Gold, and the Zona Alta property, acquired from Colombia Goldfields in October 2009, is approximately 3.4 million ounces of gold. In addition, the combined NI 43-101 inferred resource estimate for both properties is approximately 1.3 million ounces," said John Hick, CEO of Medoro Resources Ltd. "The Company has already started an exploration and infill drilling program on Zona Alta and will follow a staged, results-driven program to upgrade and expand its gold resources in the region," he added.
The Company filed a NI 43-101 technical report on the Echandia property on January 7, 2010, which sets out a measured and indicated gold resource estimate of 1.08 million ounces of gold (48.5 million tonnes at an average grade of 0.69 g/t) and an inferred resource estimate of 0.27 million ounces of gold (10.6 million tonnes at an average grade of 0.80 g/t).
The acquisition of Colombia Gold is the second part of a three-stage strategy to consolidate the primary properties in the Marmato gold district. Medoro has signed a non-binding letter of intent to acquire all the issued and outstanding common shares of Mineros Nacionales S.A., which is the final step in this consolidation.
Medoro has acquired all of the shares of Colombia Gold received to date and intends to acquire the remainder; therefore, in order to give an opportunity to the remaining Colombia Gold shareholders to tender to the offer, Medoro has extended its offer to purchase the balance of the Colombia Gold shares until Monday, January 25, 2010. Upon acquiring all of the issued and outstanding ordinary shares of Colombia Gold, Medoro will have issued approximately 33,333,333 of its common shares.
In accordance with the terms of the Offer, share certificates representing the Medoro shares issued as consideration for the Colombia Gold shares will be mailed shortly to those shareholders that accepted the offer.
Medoro is in the process of causing $2.8 million of Colombia Gold's debts to be paid.
About Medoro Resources Ltd.
Medoro Resources Ltd. is a gold exploration and development company focused on acquiring gold properties of merit to bring to production, with a primary emphasis on Colombia. The Company owns the rights to interests in the Zona Alta and Echandia properties in the Marmato region, located in Colombia, and recently announced the execution of a non-binding letter of intent to acquire all of the issued and outstanding common shares of Mineros Nacionales S.A., which has the Zona Baja property located in the Marmato District. Medoro also holds a 100% interest in the Lo Increible 4A and 4B concessions in Venezuela and interests in other gold exploration areas outside of South America. Additional information on Medoro Resources Ltd. can be found by reviewing the Company's profile on SEDAR at www.sedar.com.
This press release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. Actual results may differ materially from those currently anticipated. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward looking statements are detailed from time to time in the company's periodic reports filed with the British Columbia Securities Commission and other regulatory authorities. The company has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE MEDORO RESOURCES LIMITED
For further information: For further information: John Hick, President & CEO, (416) 603-4653, firstname.lastname@example.org; Linda Dorrington, Director, Investor Relations, (416) 603-4653, email@example.com