MDN ends agreement with Metalinvest for Ikungu 2013-05-15 15:45 ET - News Release
Mr. Marc Boisvert reports
MDN TERMINATES ITS AGREEMENT WITH METALINVEST FOR THE IKUNGU PROJECT
MDN Inc. has notified Metalinvest Capital Corp. that it has terminated the agreement signed on Feb. 25, 2013, between MDN and Metalinvest for the financing of an exploration program on the Ikungu project in Tanzania.
Following the creation in March of a management committee consisting of two representatives each of MDN and Metalinvest, a $3-million (U.S.) work program was presented to the committee and approved. Metalinvest was to deposit the funds required to cover the expenditures for the first half of 2013 within days of the approval of the exploration program to maintain its option, but was unable to do so, despite being granted an extension until May 13. MDN has notified Metalinvest of the termination of the agreement.
MDN has already initiated contact with other groups that may be interested in accelerating exploration of the Ikungu project. Ikungu has excellent growth potential. It is one of the most advanced projects in Tanzania and one of the few not owned by a major gold producer. The property covers 17.9 square kilometres and lies 17 kilometres southwest of Musoma and 135 kilometres northeast of Mwanza, Tanzania's second-largest city.
It should be recalled that the 53 holes drilled in earlier exploration programs on Ikungu identified a mineralized zone that extends more than two kilometres along strike and 300 metres vertically. Drilling has delineated four higher-grade gold zones formed around the intersections in holes IKD-45 (8.6 grams per tonne gold over 14.78 metres) on Section 2230mE, IKD-48 (3.11 grams per tonne gold over 9.50 metres) on Section 2830mE, IKD-51 (3.39 grams per tonne gold over 7.05 metres) on Section 3190mE and IKD-36 (13.22 grams per tonne gold over 4.62 metres) on Section 3610mE.
Marc Boisvert, president and chief executive officer of MDN, is a qualified person as defined in National Instrument 43-101. He has reviewed the scientific and technical information in this news release.
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