Dec 23 2014
EMED Mining Public Limited, the Europe-based minerals development and exploration company, announces that it has entered into a conditional earn-in agreement with Prospech Ltd, a private Australian exploration company, in relation to the exploration licences in the Hodrusa-Hamre-Banska Stiavnica and Velke Pole districts of Slovakia held by EMED's 100% owned Slovakian subsidiary, Slovenske Kovy s.r.o..
Prospech will invest up to a EUR 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 EUR 200,000 investment, EUR 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 EUR 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.