Apr 8 2014
Reservoir Minerals Inc. ("Reservoir" or the "Company"), is pleased to announce that, further to its January 10, 2014 press release, the Company has entered into a definitive agreement (the "Option Agreement") with Midlands Minerals. ("Midlands") for an option to earn up to a 75% interest in Reservoir's Parlozi Lead-Zinc-Silver Project (the "Project") in Serbia (the "Transaction").
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 area 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.
Qualified Person:
Dr. Duncan Large, Chartered Engineer (UK) and Eur. Geol., a Qualified Person under National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators and a consultant to the Company, has approved the technical disclosure in this release and verified the data disclosed.
About the Company:
Reservoir Minerals Inc. is an international mineral exploration and development company run by a experienced technical and management team, with a portfolio of precious and base metal exploration properties in Europe and Africa. The Company operates an exploration partnership business model to leverage its expertise through to discovery.