EMED Mining Public Limited, the Europe-based minerals development and exploration company, announces that it has entered into a conditional earn-in agreement (the "Earn-in Agreement") with Prospech Ltd (“Prospech”), a private Australian exploration company, in relation to the exploration licences in the Hodrusa-Hamre-Banska Stiavnica and Velke Pole districts of Slovakia (the "Slovakian Properties") held by EMED's 100% owned Slovakian subsidiary, Slovenske Kovy s.r.o. (“SLOK”).
Prospech will invest up to a €1 million over a three year period in return for an 81% interest in SLOK. The monies invested by Prospech will be used to fund exploration on the Slovakian Properties. Of the initial €200,000 investment, €86,000 will be paid to EMED for access to the Slovakian Properties database. The Earn in agreement is conditional, inter alia, on Prospech raising €200,000 to fund the first phase of exploration. The Earn in Agreement will terminate if it does not become unconditional on or before 31 March 2015.
The exploration licences, which occur in a region with a mining history over 1,000 years and recorded production of 2.4M ounces of gold and 120M ounces of silver, have great potential for epithermal vein style, high grade mineralisation that can be mined by underground mining methods and processing techniques that do not use cyanide, i.e. by gravity and flotation.
The parties will enter into a joint venture agreement which will provide that, in the event that EMED dilutes to 5% or less in SLOK and a bankable feasibility study of a discovery recommends commencement of mining, EMED will have the option to convert its interest to a net smelter royalty at the rate of 1.0% for a 5% interest (or pro rata for an interest less than 5%). Prospech shall have a call option to buy out the net smelter royalty for an amount and in a timeframe to be agreed.
Isaac Querub, CEO of EMED Mining said: “We are pleased to be able to reach an agreement with a partner to help develop SLOK. Given our focus on the restart of Proyecto Riotinto, which is progressing rapidly towards production, the transaction has been structured so that EMED retains some upside without the need to dedicate resources to what has become a non-core asset.”
EMED Mining Ronnie Beevor/ Isaac Querub/ Alberto Lavandeira Adan +34 959 59 28 50
Canaccord Genuity Neil Elliot/Mark Palmer +44 207 523 8000
Fox-Davies Capital Oliver Stansfield +44 203 463 5061
Walbrook PR Nick Rome +44 207 933 8783
For further information on the Company's activities, visit www.emed-mining.com.