Marlowe Regulatory News (MRL)

24 Apr 2007 07:00

Medoro Resources Announces Acquisitions in Mali

TORONTO, April 23 /CNW/ - Medoro Resources Ltd. announced today that it has entered into an option agreement to acquire rights to nine gold exploration and exploitation areas totaling more than 1,200 square kilometres in two major Birrimian greenstone belts in Mali.

The properties are generally characterized by the presence of primary and secondary gold occurrences, and regional soil anomalies also coincident with radiometric potassium anomalies, a favorable geological context similar to known deposits.

Eight properties are located in the Bougouni Region, Southern Mali, where the producing Morila (Randgold Resources-Anglo Gold Ashanti) and Syama (Resolute Resources) gold mines are located.

- Kekoro exploration permit (135 km(2)) in a geological context similar to the Morila gold mine, located 30 kilometres to the southeast; - Samaya research permit (51 km(2)) representing the western extension of the mineralized structural trend currently being explored drilled by African Gold Group; - Kangare' research permit (153 km(2)) within the major Yanfolila corridor that extends further South into Guinea, where the gold deposits of Bale', Foulaboula, Kalaka, Kalana, Kobada, and Kodieran are also located, as well as the Bambadala Nord exploration permit (101 km(2)) which cuts across this shear zone; - Balandougou research permit (93.8 km(2)) located adjacent to the Manalo property being explored by Delta Exploration; - Niaouleni exploration permit (36.5 km(2)), Nimissila research permit (239 km(2)) and Dubasso exploration permit (204Km(2));

One property is located in the Kenieba region of western Mali, where the Sadiola (Anglo Gold Ashanti), Yatela (Anglo Gold Ashanti), Loulo and Yalea (Randgold Resources) gold mines are located.

- Bantanko research permit (189 km(2)) is located in a similar geological context to the Loulo property (Randgold Resources).

The areas were selected using the SISMIN database on the country's mineral properties, available at the Documentation Centre of the Ministry of Natural Resources of Mali. This data included airborne geophysics, soil/regolith geochemistry, mineral occurrences, and geological maps. All information relating to the properties and interests have been taken from the SISMIN database.

Medoro has agreed to pay US$720,000 for the option to acquire all of the issued and outstanding shares of African Gold Resources, S.A., a Panamanian company, which has options to acquire the nine properties; if Medoro exercises this option, it will pay an additional US$2,430,000 and issue 6,000,000 shares to Gold Resources S.A., the current shareholder of African Gold Resources. Medoro will also assume African Gold Resources' obligations under the various option arrangements it has entered into with the current holders of the properties, including cash payments totaling US$224,000 and a one time payment of US$9.00 per ounce of measured gold resources and US$4.00 per ounce of indicated gold resources. The agreement also provides that if any of the individual properties contains an aggregate of 500,000 ounces or more of measured and indicated gold resources, then Gold Resources will receive a one-time payment of US$6.00 per ounce of measured gold resources and US$4.00 per ounce of indicated gold resources.

Commenting on the options, Giuseppe Pozzo, President and CEO of Medoro, stated "We believe that it is important to diversify ourselves geographically and are excited by the geological potential of these properties."

Closing of the acquisition is conditional upon satisfactory due diligence and preparation of technical reports and receipt of requisite regulatory approvals.

Medoro Resources is a gold exploration and development company focussed on acquiring properties of merit for potential joint ventures with senior producers. The company holds a 100% interest in the Lo Increible 4A and 4B concessions in Venezuela. Additional information on Medoro Resources can be found by visiting the company's website at www.medororesources.com.

For further information: Jose Francisco Arata, (416) 603-4653, jfarata(at)medororesources.com (MRL MRS.)