The Portugal project combine five exploration licences (Balazar, Valongo, Legares, Castelo do Paiva and Ponte de Barca), with four covering the majority of the Valongo geological belt and gold occurrences, plus Ponte de Barca which covers orogenic gold occurrences, collectively located in the north of Portugal.
The terms for the acquisition of Klondike’s Portuguese assets are as follows:
Payment of $10,000 in cash to Klondike upon signing of the LOI (paid).
Payment of $40,000 in cash and 800,000 Medgold shares upon signing of Definitive Agreement (paid).
A final payment in 12 months of $100,000 in cash and $250,000 in cash or shares (to be decided by Medgold).
On closing of the purchase, Klondike will retain a 2.0% NSR, which will be re-purchasable for $1.0 million per percentage point.
Peter Tallman, President and CEO of Klondike states, "Klondike has divested its interests in Portugal in return for a meaningful share position in Medgold while retaining a royalty interest. This strategy allows Klondike Gold shareholders indirect participation in a portfolio of prospective European mineral properties while keeping the Company’s financial focus on its core Yukon assets."
