Midlands Minerals Corporation (TSX-V:MEX) is pleased to announce that, further to its January 10, 2014 press release, the Company has entered into a definitive agreement with Reservoir Minerals Inc. (TSX-V:RMC) for an option to earn up to a 75% interest in Reservoir’s Parlozi Lead-Zinc-Silver Project in Serbia.
The Option Agreement provides that Midlands can earn an initial 51% interest in the Project by spending CDN$4.5 million on exploration over four years. A minimum spend of CDN$500,000 before September 30, 2014, including reimbursement of exploration expenditures on the project by Reservoir since June 6th, 2013 and 1,500 meters of drilling, are firm commitments. Thereafter, Midlands can earn an additional 14% interest over two years by obtaining a mining exploitation permit from the Serbian Government and a further 10% (for a total of 75%) by completing a bankable feasibility study within two years of obtaining a mining exploitation permit.
Completion of the Transaction is subject to customary closing conditions, including receipt of all regulatory approvals, including the consent of the TSX Venture Exchange.
The Project is a 91 square kilometre exploration permit and is conveniently located 35 kilometres south of Belgrade, the capital of Serbia. The Parlozi permit covers occurrences of historical lead-zinc-silver mining in the Kosmaj-Babe area of the Sumadija mining district in central Serbia. The mineralization in the permit comprises silver-bearing vein and replacement-type lead-zinc sulphides hosted by carbonate sedimentary rocks associated with intrusive Neogene quartz latite dykes and volcanic breccias. This type of mineralization has long supported lead-zinc-silver mining operations in the region.
Craig Pearman, President and CEO of Midlands, stated that, “Midlands is pleased to present the result of its strategic review and its plan to rebuild value for shareholders. The Company has leveraged off the weak markets to identify an exceptional project, partner, and jurisdiction, and the parties have concluded the agreement in good time to take full advantage of the rising market. Parlozi is well located in Serbia which has a strong tradition of mining, with infrastructure and skills, and is affordable and highly prospective for a junior explorer. We are looking forward to the first phase of drilling.”
Dr. Dominique Fournier, EurGeol, a “qualified person” as defined by National Instrument 43-101, has reviewed and approved the technical information and data included in this press release.
About Midlands Minerals Corporation:
Midlands is a Canadian resource company with common shares that trade on the TSX Venture Exchange under the symbol “MEX”.
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