Medoro Resources Ltd.
TSX VENTURE : MRS

Medoro Resources Ltd.

July 29, 2009 10:50 ET

Medoro Signs Letter of Intent to Acquire Colombia Gold plc

TORONTO, ONTARIO--(Marketwire - July 29, 2009) - Medoro Resources Ltd. (TSX VENTURE:MRS) announced today 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.

Medoro Resources is a gold exploration and development company focused on acquiring properties of merit for potential joint ventures with senior producers. The company recently announced the execution of an arrangement agreement to acquire the securities of Colombia Goldfields Ltd., which has properties located in the Marmato District of Colombia. Medoro also holds a 100% interest in the Lo Increible 4A and 4B concessions in Venezuela and interests in eleven gold exploration areas in the Republic of Mali. Additional information on Medoro Resources can be found by visiting the company's website at www.medororesources.com.

This press release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. Actual results may differ materially from those currently anticipated. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward looking statements are detailed from time to time in the company's periodic reports filed with the British Columbia Securities Commission and other regulatory authorities. The company has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Medoro Resources Ltd.
    Peter Volk
    General Counsel & Secretary
    (416) 603-4653