🕐03.12.08 - 16:31 Uhr
MNR News - Letter of Intent Signed to JV Turkish Properties
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Regards,
Douglas Hickey
Manager, Investor Relations
890 - 885 Dunsmuir Street
Vancouver, BC.
V6C 1N5
TEL: 604 629-4807
TSX - MNR
MEDITERRANEAN RESOURCES LTD.
Suite 890 - 885 Dunsmuir Street
Vancouver, British Columbia, Canada V6C 1N5
N E W S R E L E A S E
LETTER OF INTENT SIGNED TO JOINT VENTURE TURKISH PROPERTIES
Vancouver, B.C., December 3, 2008 - Mediterranean Resources Ltd.
(TSX:
MNR, Frankfurt: MHM1) is pleased to announce that it has signed a letter
of intent with Cengiz Holding Co.
(Cengiz) to joint venture future
development of Mediterraneans mineral properties in Turkey.
Cengiz Holding Co.
Cengiz is a large privately owned Turkish based conglomerate focused on
Construction, Energy, Mining, Metallurgy, Chemistry, Tourism and
Machinery.
Currently Cengiz is operating the largest copper mine in
Turkey, the Murgul Copper Mine and Concentrator (3mtpa ore); the Kure
Copper Mine and Concentrator (1mtpa ore); the only copper smelter in
Turkey, the Samsun Copper Smelter (40,000 tpa blister copper and 140,000
tpa sulphuric acid); the ETI Aluminum Mine and Bayer process
Metallurgical Plant (400,000 tpa ore at 50% aluminum, 60,000 tpa
aluminum production and up to 150,000 tpa aluminum oxide); and other
operations including the Odemis Emirli Antimony Mine and Corum Coal
Mine.
Joint Venture
The letter of intent (LOI) contemplates Cengiz acquiring up to a 60%
interest in Mediterraneans Yusufeli properties in Turkey, which include
the Tac, Corak, Celtik and Cevreli properties.
Upon Cengiz earning an
interest, future operations will be conducted on a joint venture basis.
The LOI will be replaced with a formal agreement within 45 days, during
which Cengiz has the right to conduct and conclude its due diligence
review of the Yusufeli Properties.
Initially Cengiz will have the right to acquire a 20% interest in the
Yusufeli Properties through:
a.
incurring at least US$2,000,000 of expenditures toward
recommended work programs on the Tac, Celtik and Cevreli properties,
within 12 months following the date of execution of the formal agreement
(the "Effective Date"); and
b.
completing a positive feasibility study of the Corak property
within 12 months following the Effective Date.
Subsequently, Cengiz will have the right to acquire an additional 40%
interest in the Yusufeli Properties (for a total 60% interest), by:
a.
within two months following completion of the positive
feasibility study, providing notice of Cengizs decision to place the
Corak property into commercial production; and within 18 months
thereafter, placing the Corak property into commercial production at an
average production rate of at least 1,000,000 tonnes per year; and
b.
incurring at least an additional US$3,000,000 of expenditures
toward recommended work programs on the Tac, Celtik and Cevreli
properties during the same 20 month period.
Mediterranean is looking forward to working with the Cengiz Group.
As a
Turkish based company, they bring extensive in-country expertise and
experience to the final stages of developing the Yusufeli properties,
which are expected to greatly expedite the process.
Further, Cengiz has
the financial capability of placing Corak into production.
The Yusufeli Properties
Mediterranean owns 100% of four exploration properties situated along a
12 kilometre mineralized trend in northeastern Turkey.
NI 43-101
compliant resource estimates (over 2 million ounces in total, Au
equivalent, indicated and inferred) have been established at the Tac and
Corak properties; and ground exploration to develop drilling targets is
ongoing at the Cevreli property.
The Celtik property, where highly
elevated copper and gold values have been encountered in grab samples
and soil geochemistry, is the subject of an ongoing 1,500 metre drill
exploration program.
Corak Resource Estimate
In 2007 MNR drilled approximately 17,500 metres at Corak over a
mineralized area including the Village and South Zones.
A NI 43-101
compliant resource estimate (March 11 2008) outlined 542,163 ozs of
gold, indicated, on a gold equivalent basis at an average grade of 1.74
g/t using a threshold value of $13/tonne contained metal value.
An
inferred resource was also outlined of 606,925 ozs of gold on a gold
equivalent basis at an average grade of 1.6 g/t and $13/tonne contained
metal value.
Tac Resource Estimate
Tac is situated approximately 8 km northeast of Corak.
Tac has an NI
43-101 compliant indicated resource of 1,055,954 ozs of gold on a gold
equivalent basis at an average gold grade of 1.61 g/t using a threshold
value of $13/tonne contained metal value.
An inferred resource was also
outlined of 123,965 ozs of gold on a gold equivalent basis at an average
grade of 1.71 g/t and $13/tonne contained metal value.
For further information please contact:
Dr.
Peter J.
Guest
Mr.
Douglas Hickey
President & CEO
Manager, Investor Relations
604-669-3397
604-629-4807
www.medresources.ca
Certain of the statements made and information contained herein is
"forward-looking information", including statements concerning our plans
at our mineral projects, which involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or
implied by such forward-looking information.
The LOI with Cengiz is
non-binding, and any formal agreement is subject to their satisfactory
due diligence investigations.
There is no guarantee a formal agreement
will be entered into.
Any formal agreement may contain terms materially
different from those outlined above.
Future development of the
Companys mineral properties is subject to a variety of risks and
uncertainties which could cause actual events or results to differ from
those reflected in the forward-looking information, including, without
limitation, failure to establish mineral resources; delays in obtaining
or failure to obtain required governmental, environmental or other
project approvals; changes in national and local government legislation
or regulations regarding environmental factors, royalties, taxation or
foreign investment; political or economic instability; terrorism;
inflation; changes in currency exchange rates; fluctuations in commodity
prices; delays in the development of projects; shortage of personnel
with the requisite knowledge and skills to design and execute
exploration programs; difficulties in arranging contracts for drilling
and other exploration and development services; dependency on equity
market financings to fund programs and maintain and develop mineral
properties; risks associated with title to resource properties, and
difficulties of determining the validity of certain tenures and other
risks and uncertainties, including those described in each management
discussion and analysis.
In addition, forward-looking information is
based on various assumptions including, without limitation, the
expectations and beliefs of management; the assumed long-term prices of
base and precious metals; the availability of permits and surface
rights; access to financing, equipment and labour and that the political
environment within Turkey will continue to support the development of
mining projects.
Should one or more of these risks and uncertainties
materialize, or should underlying assumptions prove incorrect, actual
results may vary materially from those described in forward-looking
statements.
Accordingly, readers are advised not to place undue
reliance on forward-looking information.
Except as required under
applicable securities legislation, the Company undertakes no obligation
to publicly update or revise forward-looking information, whether as a
result of new information, future events or otherwise.