Tuesday, 24th April 2007 (2147 views)

A total of nine different gold exploration and exploitation regions in Mali have been acquired by Medoro Resources after the firm secured an option agreement.

The underlying reason for Medoro's decision is the fact that, according to the company, the areas chosen in Mali are in a "favourable geological context similar to known deposits".

Of the properties purchased under the terms of the option agreement, eight of them reside in the Bougouni region while the Batanko research permit can be found in the Kenieba region.

Commenting on the development, Giuseppe Pozzo, president and chief executive officer of Medoro, said: "We believe that it is important to diversify ourselves geographically
and are excited by the geological potential of these properties."

For the nine properties which stretch for over 1,200 square kilometres, Medoro Resources must pay an initial sum of $720,000 (£361,000), followed by a further total of $2.43 million as well as six million shares, payable to Gold Resources SA.

Also, cash to the sum of $224,000 as well as payments of $9 an ounce and $4 an ounce for both measured and indicated resources must be made by Medoro to African Gold Resources should it wish to exercise its optioning rights.

 

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