Acquisition(s)

Medoro Resources Announces Completion of Sale of SGM

 

    TORONTO, Oct. 21 /CNW/ - Medoro Resources Ltd. (TSX-V/AIM: MRL) announced

today the completion of the sale of Sardinia Gold Mining SpA ('SGM') to

Sargold Resource Corporation (TSX-V: SRG).

    As previously announced, Sargold has acquired all of the outstanding

shares of Medoro's Australian subsidiary, Gold Mines of Sardinia Pty. Ltd.,

resulting in Sargold acquiring Medoro's 90% interest in SGM. Consideration for

the acquisition consisted of (euro) 6 million in cash, payable over a period

of 60 months, C$1 million in common shares of Sargold, and a 2% net smelter

return royalty interest, which Sargold has the right to buy back for     

US$1 million per percent.

    Medoro Resources has approximately C$4.0 million in cash,         

(euro) 5.5 million in receivables from Sargold, no debt and interests in

Miniere di Pestarena s.r.l. and the Monte Ollasteddu concession in Sardegna,

the latter subject to an earn-in agreement whereby Bolivar Gold Corp. (TSX:

BGC) has already earned a 15% interest and can earn, in total a 70% interest,

with Gold Fields Limited (NYSE/JSE: GFI) currently funding all work in order

to earn a 60% interest in the project.

    The completion of this transaction leaves the company in a position to

benefit from its exploration potential, now fully funded by others, and with

sufficient resources to identify other opportunities throughout Europe.

  

    For further information: Peter Volk, Assistant Secretary,

1 [phone], info(at)medororesources.com

    (MRL)