Canada-based Medgold Resources said it has signed a binding option agreement to sell a 100% interest in the Tlamino gold project in southern Serbia to Australia-based mining company MetalsTech for 3 million Australian dollars ($2.2 million/1.9 million euro) in cash.
The exclusive option is exercisable by MetalsTech on or before 30 calendar days from the effective date of the agreement and seven calendar days subsequent to MetalsTech advising Medgold that it has completed its due diligence, Medgold said in a statement on Wednesday.
Completion of the acquisition is subject to the satisfaction of certain conditions, including the conversion of the 51% interest in the Tlamino project of Fortuna Silver Mines, a partner of Medgold, to a 1% net smelter return royalty, and regulatory approvals in Canada and Australia, Medgold said.
“We are pleased to have the opportunity to monetize Medgold’s Serbian business. If completed, the proceeds of the Tlamino sale will allow us to focus on acquiring and advancing other exploration properties of merit. We’re already actively searching for new precious and base metal projects and I look forward to updating shareholders in due course,” Jeremy Crozier, president and CEO of Medgold, noted.
The Tlamino project is located close to the borders of both Bulgaria and North Macedonia, approximately five hours south of the Serbian capital, Belgrade. The project comprises two exploration licenses, Donje Tlamino and Surlica-Dukat, each approximately 100 square kilometres.
All exploration work at the project is fully-funded by Fortuna, which has an option to earn up to 70% of the project by spending $8 million (7.2 million euro) on exploration over five years.