Medoro Resources Completes Private Placement

Medoro Resources Completes Private Placement

 

    TORONTO, Jan. 18 /CNW/ - Medoro Resources Ltd. (TSX-V/AIM: MRL) announced

today that it has completed a private placement of 7,692,307 shares at a price

of $0.13 per share for proceeds of $1,000,000 with Orogen Holding (BVI)

Limited, a wholly-owned subsidiary of Gold Fields Ltd. The company has been

advised that Gold Fields now holds 12,692,307 shares or 13.4% of Medoro's

currently issued and outstanding shares. The funds will be used in part to

help defray costs associated with due diligence currently being carried out by

the company on a potential opportunity elsewhere in Europe. Commenting on this

transaction, Giuseppe Pozzo, President of Medoro stated 'We are encouraged by

Gold Fields' continuing support of and interest in our company.'

    The company remains committed to its strategy of acquiring properties of

merit which can be joint ventured with, and funded by, senior gold companies.

Following the sale of most of its Sardinian properties, the company currently

has two remaining properties - Monte Ollasteddu in Sardegna and Pestarena in

northwestern Italy.

    At Monte Ollasteddu, Gold Fields has advised the company that it is ready

to commence an Induced Polarization (IP) survey as soon as necessary

permissions are received. The purpose of this program will be to provide more

focussed targets for subsequent drilling.

    Although the recently announced sale of properties and this private

placement have restored Medoro's financial position, the company has decided

to initiate a search for a joint venture partner for its Pestarena property

rather than use its own resources to explore this early-stage prospect.

    Medoro has applied for 7,692,307 common shares of the Company to be

admitted to trading on the Alternative Investment Market of the London Stock

Exchange. These shares will also be listed on the TSX Venture Exchange.

 

    Medoro Resources is a gold exploration and development company focussed

on gold opportunities in Italy and elsewhere in Europe.

 

    For further information: Peter Volk, [phone],

info(at)medororesources.com

    (MRL.)