Almost like a take-over of MET in thisdeal. But potential a plus for investors.
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(“Medgold” or the “Company”) is pleased to provide an update on its proposed acquisition (the “Acquisition”) of Balkan Metals Corp. (“Balkan Metals”), a private British Columbia company which holds a portfolio of exploration licenses in Serbia, some of which are contiguous to Medgold’s existing Serbian exploration permits. With mineral rights covering close to 1,000 square kilometers, the resulting company will be the largest holder of highly prospective exploration ground in the Republic of Serbia. Medgold and Balkan Metals have signed an amendment to their letter of intent dated November 23, 2022 (“LOI”) to reflect the following:
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the Parties have agreed that Balkan Metals shall provide by January 1, 2023 a first tranche of interim funding to Medgold of at least CAD$50,000 as requested by Medgold, provided that Medgold has obtained TSXV approval by such date to the interim funding and the issuance of convertible debentures to Balkan Metals in connection therewith.
The parties continue to work together in the advancement of due diligence activities, as well as other matters contemplated by the amended LOI in fulfilment of the Acquisition. Management of Balkan Metals has received strong interest regarding the proposed $2 million financing, the net proceeds of which will be used by the Resulting Issuer to fund exploration of its Serbian properties (and principally, the Timok East Project) and for working capital and general corporate purposes.
The LOI may be terminated by either party should it not be satisfied with the results of its due diligence investigations of the other party on or before January 15, 2023.
Trading in the Company’s common shares continues to be halted and is expected to remain halted until completion of the Acquisition.
About Medgold Resources Corp.
Medgold is a TSX-V listed, gold exploration company targeting early-stage properties in the Balkan region. Run by an experienced management team with a successful track-record of building value in resource companies, Medgold is focused on growth through exploration and resource definition in the prospective and under-explored Balkan region"