Sargold and Medoro Amend Agreement

Sargold and Medoro Amend Agreement

 

    SRG: TSX-V   

    MRS: TSX-V and MRL: AIM

 

    VANCOUVER, May 30 /CNW/ - Sargold Resource Corporation (TSX-V: SRG)

("Sargold" or the "Company") and Medoro Resources Ltd. (TSX-V: MRS, AIM: MRL)

announce an amendment to their existing agreement. Under the amended terms as

set out in a letter of intent (the "Letter Agreement"), Sargold would, on

payment of (euro) 2.0 million, purchase 90% of the issued and outstanding

shares of Sardinia Gold Mines S.p.A. The Letter Agreement also includes the

Sargold's acquisition from Medoro Resources, SGM Ricerche, the Italian company

that holds the interests to the Monte Ollasteduu gold project. The transaction

is subject to all corporate and regulatory approvals.

    The Monte Ollasteddu project is subject to a joint venture with

Goldfields Ltd. The amendments would replace the existing agreement between

Sargold and Medoro that required payments of (euro) 5.0 million over 5 years.

    In order to facilitate this transaction Sargold has negotiated a private

placement of up to 18,500,000 million units at CDN$0.18. Each unit consists of

one common share and one half of one common share purchase warrant. One whole

share purchase warrant entitles the holder, upon exercise, to acquire one

common share at a price of CDN$0.30 for a period of two years.

    The above is subject to regulatory approvals.

    For further information on the Company please visit the Company's website

at www.sargold.com or at www.SEDAR.com website.

 

    ON BEHALF OF THE BOARD OF DIRECTORS,

 

    "Richard W. Warke"

    Richard W. Warke

    President

 

    ON BEHALF OF MEDORO RESOURCES LTD.

    "Robert Doyle"

    Robert Doyle,

    Executive Vice-President

 

    The TSX Venture Exchange does not accept responsibility for the adequacy

    or accuracy of this release. For additional information, contact Sargold

                Resource Corporation or Medoro Resources Ltd.

 

   

   

    For further information: on Medoro Resources Ltd. please contact Robert

Doyle, Executive Vice-President, at [phone] or at

rdoyle(at)medororesources.com, or visit the company's website at

www.medororesources.com. Medoro Resources Ltd.'s regulatory filings may be

obtained from www.SEDAR.com.

    (MRS. MRL)