Medoro Resources Ltd. a gold exploration and development company focused on acquiring properties of merit for potential joint ventures with senior producers announced that it has executed a letter of intent to acquire all of the issued and outstanding shares of Colombia Gold plc, a privately held UK company whose main assets are the mining rights to the Echandia property. The Echandia property lies below, and adjacent to, the Marmato properties to which Colombia Goldfields Limited (TSX: GOL; OTBCC: CGDF) has rights. The acquisition of Colombia Gold, and its Echandia property, when completed and when combined with Medoro’s proposed acquisition of Colombia Goldfields Limited, will give Medoro a significant interest in the historic Marmato gold district of Colombia.
Consideration for the acquisition will be the issuance of 33,333,333 Medoro shares and the payment by Medoro, upon closing, of C$2.6 million of Colombia Gold’s outstanding debt.
Completion of the transaction is subject to the negotiation and execution of a definitive agreement, satisfactory completion of technical, financial, legal and other commercial due diligence and customary conditions, including legal and regulatory approvals.